While 1998 saw no substantial changes, the 1999 Legacy Sedan by Subaru was an all-new model with a sleek body style, a roomy interior and plenty of available options. 24-hour roadside assistance was added to the package and LEV compliance was introduced. All trim levels were updated with significant changes for those model year. Following the all-new model, the 2000-2002 Legacy Sedan would be largely unchanged with exception to trim level upgrades. In 2003, the front end was restyled to make it smoother and more appealing. In 2004, Subaru unveiled the 35th anniversary special edition Legacy complete with signature features not found on other models. A redesigned Legacy Sedan was introduced in 2005, boasting an optional 250-horsepower turbocharged engine.
The new model offered a new exterior and interior with a long list of standard features. In 2006, the horsepower got bumped up thanks to a new variable valve lift system. All upper trim levels received major updates for this model year, too. An MP3 compatible CD player, new upholstery and folding rear seats marked the major changes for 2007.