I would skip the Passat. German engineering but made any place but Germany. I had a 93 Passat which was a nightmare. I know, it's 14 years later but that left a bad taste in my mouth.
Subarus are great but they are AWD and it's on all the time. Their fuel milage stinks.
I would buy a used 3 series BMW and be done or if you don't like used, keep that Thunderturd for another couple years and save for the BMW.
George