If you're fairly adept and follow instructions closely, I see no reason why you couldn't replace the head gasket yourself. If would probably be a good idea to send it to a machine shop to see if it needs to be decked or anything and prep the surface.
And for $3,500 you could get a brand new engine from Subaru, so I don't know what that place is talking about. I'm selling my used 02 motor with 90,000 miles on it for $1,000.



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