We looked at both, including the Outback. We immediately dropped the Impreza from consideration because of space in the back, if Subaru brought the Levorg (Impreza wagon in Japan) to the US, it would have been more of a viable option. Past that fit and finish was a huge deal for us. If you look at my history, I have had 16 Subies and 16 VW products, there is no comparison to the fit and feel of the Subie compared to the VAG products. While we were waiting to get the Alltrack, we drove my son's 2010 Impreza that had a whopping 40,000 miles, our 2010 JSW with 150K drove better and tighter. If you are fine with an appliance of a car, the Subie is that. Seats were also a huge issue for us, the Subie seats, especially the passenger one is sub par for long trips, we drive 20k/yr plus and that was key. As far as reliability. Subaru isn't as good as they used to be andVW is not as bad either. I am not sure what you are thinking about transmissions but VW is the winner for both manuals and comparing the DSG to the CVT. We paid $23,800 for a 28K list Alltrack, Sportwagens are $2K less than that. I am not sure how much Imprezas are going for, but I cannot imagine much less. MPG, yes the Subie is the winner here.