Outback 2000 124K miles. 2 sources confirmed leaky head gaskets. One says Subaru issued a tech bulletin about this and repair is covered under some kind of warranty. However, he does not think my car would be covered because of mileage (he has nothing to gain by giving me this info) The Subaru dealer did not mention any of this when they examined the car. Any advice?
At 124K it won’t be covered by warranty. Since you’ve had it confirmed by two sources, your only real option is to get cost estimates. If uncorrected a headgasket breech grows and also erodes channels in the head and block that then need to be milled out. It also gets coolant mixed in with the oil and the bearings get trashed. The mains and rod bearings ride on a pressurized film of oil and diluting it with antifreeze isn’t good.
The engine used in the Outback had this problem for quite some time, possibly even up to 2003. For the 99 and newer ones with the 2.5L, Subaru did extend the warranty to 100k. My 98 Outback had the same happen to me, and I ended up doing all the work myself from this guide:
http://home.comcast.net/~skipnospam/
Even though I really had no idea what I was doing, it was easy with the actual Subaru manual!
Cynan