Why do you need a rebuilt? because of leaking oil?
leaking oil in the valve cover gasket is normal with our cars with high mileage. all it needs is to change the gasket. make sure and check where else is leaking....
120k is not to bad unless your car starts overheating coz of the headgasket then you need a rebuild. rebuild consist of taking your engine out of the car and opening it, that cost a lot.
I would advice you to go to another mechanic and get another opinion coz it sounds like your trusted mechanic is lying to you. there NO such thing leaking oil from the headgasket coz if it does then your car will start overheating oil will mix with your coolant and you will lose power due to bad compression, unless he meant valve cover gasket.
my 98 outback had 198k miles after headgasket job and still ran fine then I sold it. I advice you to keep the car if you're in a budget. I have an 02 legacy with rebuilt engine coz of headgasket failure and im still driving 120k miles and strong. Subaru's are very reliable as long you keep it maintained regularly.
Goodluck on you car!
Last edited by rSTimpreza; 12-29-2012 at 06:47 PM..