The Outlander receives a series of notable updates for the 2005 model year. The rear fascia has been altered, and an advanced airbag system and four-wheel disc brakes have also been added. The base level LS is now available with a five-speed manual transmission.

There are now six Outlander variations, thanks to the addition of a new trim level. Front-wheel and all-wheel versions of the XL and XLS return, and a new Limited trim offers the same drive train options. The XL comes with the comfort and convenience necessities like air conditioning, a CD player, full power accessories and cruise control. The XLS adds a leather-wrapped steering wheel, fog lamps, alloy wheels and keyless entry. The Limited upgrades includes leather upholstery, heated seats and mirrors, and a sunroof.

All Outlanders are powered by a 2.4 liter inline four, which generates 160 horsepower and 162 pound-feet of torque. A five-speed manual transmission is included, and a four-speed automatic is optional. Fuel economy is estimated at 20/26 mpg.

Many consumers have expressed satisfaction with the new five-speed manual transmission, as a fine compliment to the AWD system. Others have praised the Outlander for its value, compared to the Honda CR-V and the Toyota RAV4. Drivers report a comfortable interior, thanks to conveniences like a height adjustable driver seat, extra storage compartments and a cabin air filter.

Despite a significant power boost last year, many owners and reviewers still feel that the four cylinder engine should be more powerful. The Outlander is also set back by lack of standard safety features on the lower trim levels.