Three problems related to differential unit have been reported for the 2005 Toyota Highlander. The most recently reported issues are listed below. Please also check out the statistics and reliability analysis of the 2005 Toyota Highlander based on all problems reported for the 2005 Highlander.
Traveling at approx 35mph the vehicle suddenly and without warning decelerated rapidly to zero mph and a loud gear - like crunching and grinding sound was heard under the engine compartment. The vehicle would only move at 1 mph to pull off the road and was totally disabled. Vehicle had to be towed. Mechanics concluded the front drive differential suffered a major failure and then ruined the automatic transmission.
I have 2005 Highlander limited v6 awd. The car has issues with the differential fluid leaking after 30,000 miles or every two years. The dealer fixed the leaking for my car at 35,429 miles (no charge due to warranty) in 2008; however, the differential was leaking again at 67,329 miles this year. I contacted Toyota and they told me that the warranty for the differential is 5 years or 60,000 miles, whichever comes first. Once the vehicle is outside of these warranty guidelines the cost of repairs becomes the owner?s responsibility.
2005 Toyota Highlander with only 72000 miles (12,000 miles out of warranty), seals on transfer case of transmission leaks onto exhaust pipe causing smoking and smell of burnt fluids.