Subaru's all-wheel-drive system is one of the best in the business and it ensures power is distributed to all four wheels. This makes the car easier to control on dry pavement and is especially helpful when the road surface is slippery. Unlike part-time four-wheel-drive systems designed for off-road use, Subaru's system continuously redirects the power to the tires with the best grip, improving driver control. Also unlike part-time four-wheel-drive systems, Subaru's all-wheel-drive system adds little weight. The key to the system is a viscous coupling that is no larger than a grapefruit; this effectively replaces the hefty transfer case you'd find in a truck or SUV. (Legacy models with automatic transmissions use an electronically controlled clutch instead of a viscous coupling, but this is still a light and compact unit.)

The four-cylinder engine produces 165 horsepower, which is good for this size of car. More important, the engine generates good low-end torque, which is the force that propels you away from intersections and up steep grades. Subaru's engine is more powerful than the four-cylinder engines in the Audi A4, Honda Accord and Toyota Camry, and those are bigger cars. Under hard acceleration, the Legacy's four-cylinder engine sounds boomy at low rpm, but the boom quickly gives way to an enthusiastic growl at higher rpm.

The manual transmission is smooth and pleasant to use. It helps get the most out of the engine.

A well-designed gated lever on the floor controls the optional automatic transmission. It's a straight shot from Drive to Third and back, making it easy and fun to shift between them. Move it over into a dogleg to downshift to Second and First. Who needs a Tiptronic? Subaru's system even allows quick shifting between Drive and Reverse when turning around, yet there's never any doubt which gear is being selected. It isn't cumbersome like some older Mercedes-Benz gated shifters. Gear ratios are spaced well to make maximum use of engine power.

In regular driving on smooth dry roads it is all but impossible to notice that the Legacy has all-wheel-drive. It is transparent to the driver, which is as it should be. The steering feels nice and precise and there is no torque steer when accelerating hard.

Handling is very balanced. Dive into a corner with too much speed and the Legacy understeers mildly; lift off the throttle and it transitions into mild oversteer. Translation: it's easy to drive, even at the limit of the tires. That's good news if you're ever called upon for an evasive maneuver. Anti-lock disc brakes and the all-wheel-drive system help the driver avoid accidents by managing grip while the driver steers around the obstacles.