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Our 98 Subaru outback started screeching and grinding while turning when the fluid got low enough which was the first clue. Open the reservoir, and fluid was low. The fluid gets everything around the Power Steering pump wet, and pools on the engine beneath the pump. The pump is on top of the front passenger side of the engine. Eventually the leaked fluid spills from the engine onto the exhaust which makes for some bad smells. As of right now, the leak is bad enough to need filling every couple of days. Some forums have suggested it may simply be a gasket between the reservoir and the pump itself.

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Q: How do you check for a power steering leak on a 1998 Subaru Legacy Outback?
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