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I have a 99 Outback and I'm wanting to replace the front wheel bearings. After I take the strut bolts and balljoint loose in the back, my understanding is to take the axle nut off and use a 2 jaw puller and the hub will slide off the axle. Is this correct?
 

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once the axle nut is free it should slide off the axle with ease... never found a jaw puller necessary, although it could come in handy for some.
avoid autozone for your bearing seals... chink plastic crap.
make sure to check your axle boots wile your in there, any cracks or visible fluid leakage and i would consider replacing those as well.
 

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So it should slide out with ease.....what about the spline, any need to mark it so it lines back up when it goes back together?
 

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Removing the spline shaft is the easy part. What's difficult is pressing the old bearing from the hub and pressing the new one in. I'd recommend removing the whole steering knuckle and taking it to a machine shop to have the new bearing and seals installed.
 

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When I did my 2001 - all I did was remove the axle nut and with a piece of 2x4 and a nudge from a 8lb sledge just a tap or two the axle slipped free of the bearing housing. Their is a simple bolt that sits across a notch in the top of the ball joint that holds the bearing housing to the lower suspension unit. By removing this small bolt the whole housing then will come free exposing the top of the ball joint commonly called the hockey puck given thats sort of what it looks like. I would not mess with removing the actuall ball joint unless you plan on replacing that also.

Napa parts machine shop charged me $10 to press out and press the new bearings. However either the fronts or rears can't recall which can be purchased with the whole unit ready to go for the same price or less than what it costs to keep you hub and have the old pressed out and the new bearing pressed in.

For sure reboot any torn CV boots while your there. KEEP YOUR STOCK AXLES! They are light years better than the after market junk sold at the auto store.
 

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Removing the spline shaft is the easy part. What's difficult is pressing the old bearing from the hub and pressing the new one in. I'd recommend removing the whole steering knuckle and taking it to a machine shop to have the new bearing and seals installed.
Dito. Or any shop that has a press. Any shop that does brake and suspension repairs should have a press, mostly for bearing repairs, but also used for bushings, ball joints in some old american models, to name a few. You never want to hammer on a bearing. And when you put it all back together, and have the tire on the ground, retorque that axle nut.
 
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