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Good chance someone swapped in a 2.2 motor during the life time of the car. There is a lot of that done, when the original 2.5 motor blows it's head gaskets. The 2.2 motor has a much better reputation for reliability, compared to the 2.5. The 2.5 in 96-99 models is notorious for blowing head gaskets, as the pistons protrude just slightly above the block at top dead center. Subaru used extra thick head gaskets, but over time, they don't hold up, and burn out, allowing exhaust gas to enter the cooling system. Over heating of the engine is the result.

 

2.2 motors don't have the head gasket problem, and are great for longevity.

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The only 2.2 liter outback in 1999 is the Impreza Outback Sport.

 

1999 LEGACY wagons were 2.2 liter.  Some people mistakenly (conveniently - sells better) call the wagons Outbacks.  (a GT wagon may be an exception if offered).

 

1999 Outback = 2.5 liter - always.  If it's a 1999 Outback then he is wrong and you don't need to ask any more questions.  It's either:
A.  A 2.5 liter EJ25D DOHC engine

B.  A 2.2 liter that's been swapped in place of the 2.5.

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That coin can land on two sides, the 2.2 is a great engine but if it's been swapped, why is he not being up front about it?

If it's swapped and he's not owning up to it - then I don't picture a pristine 40,000 mile recently driven EJ22 with maintenance records, perfect compression and UOA tests.

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Thanks, He says he bought it from a guy in Idaho, He told me that he thought it came stock with a 2.2 but I did not think so, car has 150k so I thought it was worth taking a look at. I have a 96 I did a 2.2 swap and am very happy I did it!!

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