Have you been considering a European sports sedan but get sticker shock when you see the prices? If that’s the case, you may want to give some serious consideration to the Subaru Legacy 2.5 GT. Like Volkswagen, Subaru has been quietly moving upscale to generate a better quality image — and larger profits.

Let’s face it, style wise, the Legacy isn’t a real head-turner, but it does have a certain purposeful European sports sedan appearance — and something most of them don’t have — standard all-wheel drive on all versions and trim levels. Rounding out the package is special upholstery and interior trim. The Legacy 2.5 GT sedan is the flagship of Subaru’s 2003 all-wheel-drive sedan and station wagon lineup.

Slightly upgraded from 2002, the Legacy is trimmed out in a fresher style offering a new front bumper and fascia that integrates the standard projector-beam fog lights and is highlighted by a revised grille The entry-level Legacy L gets body color door handles, side moldings and exterior mirrors for a cleaner look.

Stickering between $24,795 and $25,695 in the 2.5 GT trim, and $19,495 to slightly over $21,000 in the L version, both come with a 2.5-liter 4-cylinder engine that generates 165 horses and can be coupled to a 4-speed automatic transmission (a $1,000 option) or the standard 5-speed manual gearbox.

Personally, for the sheer driving fun this car offers, I’d opt for the stick, which allows the 2.5 GT to deliver faster acceleration. Although the responsive automatic does a decent job, the Porsche-style engine needs lots of revs for optimum performance, so in my view the stick offers less drivetrain power loss.

The Legacy 2.5 GT replaces the 2002 Legacy GT and GT Limited, which means it’s pretty well equipped, including leather seats, dual-mode heated front seats, heated outside mirrors and front side-impact airbags.

New equipment on the 2.5 GT includes an 8-way power driver’s seat, an in-dash 6-disc CD changer and seven speakers, a 100-watt AM/FM/weather band stereo system, leather-wrapped steering wheel and newly designed alloy wheels.

The rest of the 2.5 GT’s equipment carries over from the 2002 model year, including a viscous limited-slip rear differential for extra traction and a sport-tuned suspension.

Standard equipment includes A/C, power door locks, windows and a moonroof for the sedan (the wagon has dual moonroofs.) a keyless entry system and a new windshield wiper de-icer.

The Legacy L, which comes standard with an AM/FM stereo with a single-disc CD player and a standard keyless entry system, offers a Special Edition Package that adds equipment from the 2.5 GT, including a power sunroof, 16-inch alloy wheels and halogen fog lights.

Subaru is perhaps best known for its efficient full-time all-wheel-drive system, which is standard on all its models. However, the 2.5 GT with the automatic comes equipped with Subaru’s most advanced all-wheel drive system, called Variable Torque Distribution (VTD). There’s also get a new Sportshift feature that allows precise manual gear shifting like the j-gate system utilized by Jaguar, Volvo, Nissan, et. al.

Subaru introduced VTD all-wheel drive on its popular 2001 Outback H6-3.0 VDC 6-cylinder model. In 2002 it was added to the rally and race-bred Impreza WRX — and became an immediate hit with car buffs.

Inside, there is ample, if not impressive room for a car this size. The interior is quiet, and has wood grain patterned-trim in the 2.5 GT. Instrumentation is simple, with white on black gauges that are easy to read at a glance. Most of the important stuff is within fingertip reach. There’s also a tilt-adjustable steering column.

The Legacy easily seats four tall adults. The front seats are firm and quite supportive. The trunk is roomy with a large, wide opening, although the manual hinges take up a lot of space and it has an unfinished interior look. The rear windows don’t go all the way down, which can be a pain in a family car.

From a safety standpoint, the Legacy features a “Ring-Shaped Reinforcement Frame” body structure that boasts front and rear crumple zones and provides protection in a variety of collisions — including frontal, offset, side and rear.

Behind the wheel, I found performance to be lively up to about 60 mph if you all but redline the engine after moving off the line. But in that 65-75 mph passing zone it’s just average. The 2.5-liter engine without any hot rod gear can do only so much sitting under the hood of a vehicle weighing approximately 3,400 pounds.

The 2.5 GT’s 55-series tires, which ride on 16-inch rims, are fairly wide. But even wider tires mounted on 17-inch wheels would seriously enhance handling and braking. On the other hand, I’m guessing Subaru doesn’t want to make the 2.5 GT too sporty because it might cut into sales of the hot rod WRX.

Whines: This car could definitely benefit from a more potent powerplant. Even though it’s really fun to drive, the 2.5 GT is not really a hot rod with either transmission.

Applause: The Legacy L version is pleasant enough, but the 2.5 GT sedan is really the most fun. Steering is quick, it handles with confidence, and the all-independent suspension delivers a supple ride. The standard anti-lock brakes make stopping distances short. Adding to peace of mind is a 3-year-36,000-mile roadside assistance program.

Bottom Line: In the top-of-the-line 2.5 GT trim, the Legacy can double as a lower-priced substitute for some European sports sedans from BMW, Mercedes and Audi. If you’ve never been in a Subaru showroom but are in the sport sedan market, the Legacy GT sedan is definitely worth your time to take a look.