07 sti have been problematic, which sux but if you are gonna modd for suspension and/or power then who cares if an evo handles better stock to stock for an sti? There is a boat load of suspension mods.

As far the engine failure, have you got it pro-tuned? if not do that. Also do you log it? If not do that and run good oil in like Amsoil. Change the plugs and do the compression at the same time and watch it basically, if the logs r good and the compression is good then keep it and modd it like any other 04-06 sti

heres another view, if you sell it the money you loose on it (cars r not an investment right??) and then buying another car will be difference for sure in $$ u could easily get a better built motor for the money or less (and throw in some engine mods at the same time)

Just a thought, think it through. I am a subaru fanatic, but a car guy first and giving you advice froma financial standpoint. You probably still have engine warranty if its not modded...

 

Only the original owner gets to take advantage of the 10 year/100k warranty.

As soon as I took possession, it went down to a 6 year/60k warranty.

Keep that in mind.

 

Just to add my 2 cents here, since you are planning on dragging the car, at least get the transfer case beefed up by either Shep or TRE (350$ and 450$ respectively), since a replacement ring and pinion gear will net you over 1200$, whereas a performance rebuild (for peace of mind when launching 1.6 60ft) will go a long way and put significantly less stress on the original ring and pinion gear. As for the transmission, get it rebuilt once it is seized and your car can no longer go from point A to point B, every part in that box is completely replaceable and the minimum rebuild cost is roughly 900$ depending on what you want upgraded and what you f'd up.

It is much less expensive to prevent the t-case from whining than to stop it from whining :P