Depending on if anything else is really wrong with it, you would probably be best off selling it whole to someone who wants it as a parts car.
Since you said it was your daughters first car, and that you paid for it, Im guessing she is also a new driver. That said, when/if you get rid of the SVX and want her to have a AWD car without shelling out lot's a $$$$'s, get her an older Impreza, or an older Legacy.
Later on, when she can pay for it, she can get an SVX.
