Two problems related to engine failure have been reported for the 1996 Toyota Avalon. The most recently reported issues are listed below.
Purchased used 1996 Toyota Avalon in March 2002 with 72,000 miles. At that time I also purchased a 2 year/24000 mile extended warranty through universal underwriters. Engine failed in early December 2003 at 92000 miles due to sludge buildup in oil pan. Oil had been changed every 3,000 miles. Toyota not covering engine replacement because it is not a 97 model. Extended warranty not coving because failure caused by "fluid contamination".
1996 Toyota Avalon engine failure.