Subaru Outback vs Volkswagen Passat

What's the difference?

Over 30 years and seven generations of Outback in Australia, the latest might just be the best.

It's great to drive, even better to sit in, very easy to live and willing to go further than most equivalent large SUVs at its price point.

The styling is definitely divisive, with purists unhappy that the long, crossover wagon silhouette is now gone, but what we have instead is a family-friendly vehicle that pleases on so many fronts.

We’d go as far as saying the latest Outback might be the most-rounded Subaru currently available, and great value to boot. And the base AWD is all the SUV most people will ever need.

That’s not bad for something this square!

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

I so enjoyed driving the Volkswagen Passat 206TSI R-Line. It's a roomy wagon that should fit a lot of different types of families. It still has sporty performance that will entice even the most reluctant family car buyer, so don't be turned off by its large proportions! I really like the comfort, convenience and handling of this one, so it gets an easy 8.0/10 from me.

My kid thought the blue colour was cool and loved having so many things to play with in the back seat. His only complaint was about the heavier doors but he still managed. He gives it an 8.0/10, too.

Historically, Subarus have majored on quirky. Kooky even.

Think buggy ‘60s 360, offbeat ‘70s 1400, spacey ‘80s Vortex, futuristic ‘90s SVX, Alfa-esque ‘00s pre-facelift Tribeca, dorky ‘10s Exiga. We’d go as far as saying that, in over 50 years, only a handful of Subarus have looked normal. And they’ve all been boring. The beautiful ones, like the original Impreza and ’03 Liberty, remain stunning.

But quirkifying such an important family car in such a mainstream segment… that's risky. And we’re here for Subaru’s boldness. We just wish the details weren’t so heavy handed.

Longer, larger and wider than any prior version, the 2026 Outback shares its stretched platform architecture fundamentals with the latest Forester. That’s a sound basis. Just Xeroxed up by about 15 per cent. Boxy shape. Deep glass. Wide doors. Form over function. This is designed to make life easier.

What you make of the Wilderness’ visual features, including the dramatic grille mask, SUBARU wording, painted trim surrounds and cladding-on-cladding (behold the Kia Tasman-like squared-off wheel arches if you dare) is down to personal taste. Eyes be damned! But it is so far-removed from the elegant grace of the previous model that some might argue a name change would at least have silenced the critics.

On the other hand, besides fugly being in Subaru’s DNA, a large, lofty SUV is probably truer to the term ‘outback’ than on any elegant and gracefully-silhouetted crossover wagon.

Meanwhile, the polar opposite is true inside. It’s as if the interior designers strove for class and calm, with none of the exterior styling’s visual noise, or shouting in the Wilderness’ case. And there is the luxury of space, vision and scope, further enhancing the Outback’s usefulness. That you can’t see the body, just the beautiful cabin’s detailing, elevates this Subaru. Unlike in the previous model, which was a bit of an aesthetic and functional mess inside.

The Passat is a large car and stands at 4708mm long, 1832mm wide and 1504mm high. The boxier rear and long nose make these proportions feel even larger.

The 2023 model doesn't see much change, if any, to the previous iteration. The exterior features the classic VW sharp pleat that runs the length of the body, slim-line LED lights and pronounce grille with lots of chrome accents found throughout.

It looks shiny, new and stylish, but not garish. You'd be proud to be seen in this.

The interior is also classically VW – sharp, a little pared back and hosting easy to see buttons and dials. The adjustable ambient lighting elevates the cabin space, as does the black headliner (R-Line exclusive).

An interesting feature is the directional air vents, the slatted design is carried the entire length of the dash which accentuates the width of the car. It all looks seamless and well thought out.

Like all Subarus, Outback boasts an interior of very high-quality craftsmanship, being built beautifully, without rattles or noises or jarring trim.

The difference here is just how pleasingly practical and easy yet attractive this environment is, from the moment that wide-opening door opens and shuts with reassuring solidity.

The horizontal dash layout departs from the Tesla-aping portrait screen domination of the previous generation, banishing the confusing and annoying virtual controls for real, live buttons.

But is it original? The layered presentation is attractive and distinctively Toyota… err Subaru. Yes, it is very much like the bZ4X-based Solterra EV’s look inside.

That’s no bad thing from an ergonomic point of view. The driving position is flawless, the seat/wheel/controls relationship considered and the placement of the climate controls, audio system, armrest and storage just right. We’re also happy to see the instrumentation display incorporate various visual choices, including digital analogue-style dials.

A particular callout goes to the slick and speedy tactility of the brand’s latest touchscreen, as well as the (again suspiciously Toyota-like) interface and graphics layout. It’s all good.

But wait, there’s more. The Outback’s front seats are claimed to be particularly supportive, and after hours in them on and off road, they seem to exceed Subaru’s claims.

If you’re expecting regular mid-sized SUV levels of interior space, be prepared to be impressed, because the Outback’s extra sizing outside seems to be multiplied inside. There’s ample room for long legs, big hats, broad shoulders and buxom hips. It all works so well. This is probably one of the best modern SUV interiors, period. Nothing seems to have been overlooked.

The rear seat is presented to please, too. It can seem a bit drab in the lower-line models, but the same virtues of effortless entry/egress, seat comfort, convenience (including air vents, USB ports, cupholders and armrest placement) apply. We noted the lack of road/tyre noise intrusion at speed, too.

Behind the very sixties Jeep Wagoneer-looking rear is a vast luggage area, complete with a low floor, remote rear-seat folding handles, 12V outlet and quality trim. And that space-saver spare lives underneath.

Subaru seems to have designed this car from the inside out and it shows. A rare 10/10 from us.

A very practical family wagon with all passengers enjoying ample head and legroom.

The amenities in both rows are very good. The seats are fairly comfortable but the lumbar support isn't awesome. The massage function on the driver's side is a nice novelty but not strong enough to be called a massage. Think of it as gently stretching.

For storage, you get a decently sized middle console, dedicated phone tray, cooled glove box, drink bottle holders in each door and two cupholders.

There are plenty of charging options available for the front with two USB-C ports and a 12-volt socket. Bonus having the wireless Apple CarPlay (and Android Auto), as it's one less cable you have to worry about.

In general, I like how easy the tech is to use. The 9.2-inch touchscreen multimedia system looks great and is responsive.

It's easy to get all the connections going and you can pull the built-in satellite navigation directions through to the 10.25-inch digital instrument panel. I did miss having a head-up display this week but the info on the instrument panel is displayed clearly.

The back seat gets a couple of cupholders in the fold-down armrest and drink bottle holders in each door. It also has directional air vents with climate control, reading lights and one USB-C port for charging. However, I would have liked to have seen another charging port, to limit sibling squabbles.

There are ISOFIX child seat mounts on the outboard seats plus three top tether anchor points.

The backseat is wide enough to fit three child seats side by side if needed, and there's plenty of room for front passengers when a 0-4 rearward facing child seat is installed.

The windows are wide and offer good visibility but I really like the 142mm ground clearance. It was super easy for my six-year old to climb in and out.

The only thing he mentioned he didn't like was how heavy the doors were to operate. I don't mind this because they feel solid but they do swing wide, so be wary of letting any wild kids just hop out themselves in a crowded car park. You may get (or inflict) some dings.

The boot is a great size at 650L, with all seats in use, but if you pop down the backseats, that jumps up to 1780L.

The back seat also split-folds 40/20/40, which opens up your storage options. I enjoyed using the powered tailgate with kick function, it's handy on the grocery run.

The 206 TSI R-Line is top of a (small) two-model line-up. Our example has been finished in 'Lapiz Blue', a colour exclusive to the R-Line. Otherwise, expect a sea of monochromatic colour options.

We say top model but it's not necessarily a massive jump up in specifications from the 162 TSI Elegance, you're paying for the engine performance on this one.

This R-Line will cost you $67,790, before on-road costs. That's a $4K price hike from the 2022 model with no discernible upgrades.

And that price tag still puts it well above its closest rivals, with the Octavia RS 180 TSI being $53,090 and the Mazda6 Atenza at $52,140 (all before on-road costs).

However, you won't be disappointed with the features list with Nappa leather-appointed seat trim, R-Line stitched detailing on the floor mats and seats, electric and heated front seats, massage function on the driver's seat, a panoramic sunroof as well as wireless Apple CarPlay and Android Auto all coming as standard.

The R-Line also enjoys 19-inch alloy wheels, a full-sized spare, heat insulating tinted glass, 65 per cent light reducing rear privacy glass and 30-way adjustable ambient lighting in the cabin.

Don’t worry, Subaru traditionalists. The Outback again offers a pair of horizontally-opposed 'boxer' four-cylinder engines.

The regular Outback versions are powered by a 2.5-litre twin-cam petrol unit making 137kW of power at 5800rpm and 254Nm of torque at 3700rpm.

Choosing the Wilderness switches things up to a 2.4-litre turbo version delivering 194kW at 5600rpm and 382Nm between 2000rpm and 3600rpm.

Both use a continuously variable transmission (CVT) with eight artificial ‘steps’ for a more torque-converter-like experience. Sadly, no manual gearbox is available.

The R-Line has a 2.0-litre, four-cylinder turbo-petrol powertrain with a maximum output of 206kW/350Nm.

That puts its engine specs 44kW up on the Elegance model and you feel that difference when you put your foot down.

The six-speed auto transmission provides surprisingly smooth shifting in most settings. The grunty engine combined with the all-wheel drive creates a sporty and purposeful driving experience.

Where the Outback regresses compared to its predecessor is efficiency.

Despite a modest 50kg weight rise, the substantially boxier shape is probably behind the jump in petrol consumption, rising nearly one litre per 100km compared to before in the Outback, and nearly 2.5L/100km, in the heavier Wilderness.

The combined average consumption figure for the 2.5-litre naturally aspirated engine is 8.1L/100km, for a carbon dioxide emissions rating of 183 grams per kilometre, while the 2.4-litre turbo manages 9.7L/100km and 228g/km.

Filling the 63L tank, expect an average range of about 777km in the former and just 648km in the latter. Surely, the coming hybrid version can’t arrive soon enough for some buyers.

At least both engines can drink from the standard 91 RON petrol bowser.

So much for the theory. Out in the real world, over a solid day's testing on- and off-road, we found there was a difference of about 1.5L/100km between the regular Outback and the Wilderness.

That powerful engine does cost you a little bit with efficiency. The official combined fuel figure is 8.1L/100km and real-world testing saw my figure at 8.6L.

Not too bad for the type of driving I did this week, which was a combo of open-road and urban. I wasn't scared of putting my foot down but I would expect to see a double-digit figure in an urban setting.

This has a 66L fuel tank and based on the official combined figure, you should be able to get around 815km driving range, which is great.

Confession time. The way the previous Outback drove was profoundly disappointing. The steering felt numb, the ride was too stiff and the car seemed wilfully dull, even in the turbo version.

The contemporary Forester ran rings around it for driving pleasure and refinement.

But Outback number seven is completely different and maybe the best-driving non-WRX Subaru right now.

From the moment you climb on board this vast SUV from Japan, everything feels right – from the driving position and relationship with the controls, to the sumptuously comfy seats and commanding vision all around the vehicle. That’s a promising start.

Push the ignition and press the accelerator down, and the regular Outback 2.5 quietly, gently and smoothly moves off the line. With modest power outputs and a CVT, you might expect it to also sound revvy and droney, but instead the acceleration is strong and throttle responses determined.

We drove this for hundreds of kilometres and never found the performance lacking, even with three adults and their luggage on board, over hilly and even mountainous terrain. Yes, it is possible to have the CVT whining at higher revs, but not within normal driving scenarios. And the quietness and lack of road noise is terrific.

Moving to the Wilderness and its 2.4-litre turbo powertrain, the same applies, except of course mid-range response is significantly faster and with a slicker, more refined delivery. Press and squirt, this is deceptively quick, because the car does a great job in masking the noises and vibrations that working an SUV hard often elicit.

We only wish there was a manual option. With steel wheels, cloth seats and without the Wilderness' add-on gargoyles.

Now, it also seems that Subaru listened and learned from previous criticisms like ours, because the Outback’s newly-redesigned steering is a delight, with a natural, fluent sweetness and ease that’s combined with a pleasing connection with the driver.

The result is balanced, controlled and enjoyable handling, backed up by reassuringly stable road holding. We drove through a sudden, heavy thunderstorm near Bathurst on the first, hot summer afternoon’s test session, and found the Outback to feel impervious through such slippery conditions.

And this all largely applies to the Wilderness as well, though its 20mm-higher ground clearance (to 240mm) makes it feel a little less composed than the glued-down regular model. Both feature a stiffened body and multi-link rear suspension, by the way.

More progress has been made in the Subaru’s ride quality. Gone is the hard suspension feel, for a far-less firm set-up, providing a comfortable and queasy-free ride. Even in the loftier Wilderness. This is the model’s greatest advance over its predecessor and we’re extremely happy with the outcome.

Finally, other than the at-times over-eager driver-attention monitor, the ADAS tech provides subtle, nuanced back-up, with quiet lane-keep intervention, a measured adaptive cruise-control functionality and no jarring buzzes and warnings.

We also enjoyed a session taking both grades off road, to show off their 4WD prowess. The clearances are ample, the hill-descent tech effective and the ability to scramble over wet rocks impressive. The Wilderness especially may even live up to its name!

This is a difficult SUV to fault. The Outback’s breadth of capability on and off the beaten track give it an unusually wide bandwidth for what is a monocoque bodied family convenience. That there is so much sophistication and fun to be had as well make this so much better to drive and live with than the disappointing old version.

We can’t wait to get to know the latest Subaru better on more familiar roads.

The performance of this is to be commended. Powerful but poised, there's a sense of performance in reserve when you put your foot down and while still fun, it's not unbridled power.

It inspires confidence, the lower centre of gravity and firm steering meaning you tackle corners with minimum roll. You can accelerate out of a corner a little earlier than you might normally in this.

The cabin is nice and quiet with some road noise at higher speeds but not enough to intrude on chatting.

Despite suspension that feels sporty, aka stiff, the ride comfort is very good, with back seat passengers also feeling the comfort. There's not a lot of jostling in this.

Let's talk parking. It is a large car but you don't feel those dimensions when you park it.

It's very forgiving to manoeuvre with the front and rear parking sensors, crisp 360-degree view camera and tight 11.7m turning circle!

And if you're not confident it has a self-parking feature.

This has a good list of safety features with the following being standard: LED daytime running lights, lane departure alert, lane keeping aid, blind-spot monitoring, rear cross-traffic alert, 360-degree view reversing camera with dynamic guidelines, front and rear parking sensors, driver fatigue alert, and adaptive cruise control (with stop/go function).

I like the Emergency Assist feature which will provide multiple visual and sound alerts if there's no steering wheel activity detected. If there's still no driver input, the car will slow down and ultimately come to a complete stop.

The Passat's maximum five-star ANCAP safety rating has just expired and at the time of writing was yet to be retested.

The 2023 Passat has nine airbags, including side airbags for the rear outboard seats, as well as curtain airbags covering both rows.

There are three top tethers across the rear row and ISOFIX child seat mounts on the outboard positions.

Subaru offers a five-year/unlimited kilometre warranty, and that also comes with 12 months of roadside assistance.

Now, that's pretty average nowadays, so nothing special, particularly when other SUV companies like Mitsubishi, Nissan and MG offer conditional 10-year warranties.

Service intervals are at 12 months or 15,000km for both engines. There is a capped-price servicing offer covering this timeframe. They are currently listed at approximately $350, $530, $405, $705 and $370 for an average of $472 per workshop visit.

There are 128 dealers or authorised Subaru service centres across Australia as of January 1, 2026.

The Passat comes with a market standard five-year/unlimited km warranty, and roadside assistance is included for one year (through Allianz Insurance) if you get your car serviced at a VW centre.

There is a three- or five-year capped price servicing plan that can be pre-purchased and will save you money compared to the pay-as-you go option. Servicing averages $620 though, which is expensive for the class.

Servicing intervals are reasonable at every 12 months or 16,500km – whichever occurs first.