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I have an '03 Avalon. I only owned this vehicle for about 10 months before I started having smoke come out and found out from my mechanic that it was engine oil sludge. I purchased this vehicle because of its low mileage. I currently have 85,000 miles on the vehicle, which is not bad for an '03. I found out that Toyota only covers this problem from up to '02 so I was out $3,000 dollars for my mechanic to clean it (which is cheap for this problem). A new engine would have cost approx. $5,000.00 w/o labor. I was told by the extended warranty that I purchased and by the dealer that they did not cover it because it is negligence from not having oil changes, although I have oil changes as scheduled.
Good luck resolving your problem. I am really disappointed that I am out so much money after owning the vehicle for less than a year.
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