I bought a used 2000 Avalon XL last April (2005) with 70,022 miles on it. CarFax showed it has one previous owner (a private lease) in the Los Angeles area. Shortly after I had it, I noticed blue/grey smoke on startup, but only occassionally. The Toyota dealer could not repeat the problem. A highway trip of about 170 miles revealed oil useage of about 1 quart, same on the return.
Took it to the Toyota dealer and they said they would inspect it for the famous "gel" problem, and if it was gelled, Toyota would rebuild or replace the engine. They pulled the valve cover, found a small amount of sludge, but determined it did not qualify for the "gel" program. However, they did decide it needed an engine rebuild. Fortunately, I had a Toyota extended care warranty, which covered that problem.
Toyota intitially approved a rebuild of the existing engine, but would not approve a short block replacement. However, when the dealer got the engine opened up, they decided a new (factory rebuilt) short block was called for and convinced Toyota to cover it under the warranty.
The block was replaced, the head was rebuilt, timing belt, water pump, plugs, etc. were all replaced and the car returned to me.
Should be fixed, right? Wrong! EXACTLY the same symptoms: smoke on startup, used a quart of oil in less than 200 miles.
Puzzlement! What could still be wrong? Dealer thought perhaps bad short block or bad head rebuild and suggested taking engine apart again. I suggested that since the symptoms had not changed at all, it was more likely something that had not be changed.
The only thing I could think of was something to do with the crankcase ventilation system pumping oil into the intake manifold.
Did a search of various Toyota sites (including this group) and found that Toyota had discovered a ventilation problem with the year 2000 era V-6 valve covers. Apparently the baffles would clog with sludge that couldn't be cleaned out causing the symptoms I had observed. As a result Toyota resigned the valve covers (replacement of the valve covers was considered cheaper than cleaning and modifying the existing valve cover baffles).
I printed out all of the info I found on the internet and gave them to the service manager. He called Toyota and they confirmed the issue with the valve covers and agreed to replace them under my extended care warranty.
The bottom line is, the valve covers were replaced, and the problem was finally fixed. The service manager is now wondering if he could have gotten away with simply changing the valve covers in the first place and not rebuilding the engine at all.
He is probably correct that simply replacing the valve covers would have solved my oil problem, but I would have been left with a worn, sludged engine, so I am happy it worked out the way it did. As it is, I now have a 2000 Avalon with 72,000 miles on it, but with essentially a completely new engine. And except for a few maintenance items I had to pay for, like the timing belt and new iridium plugs, the new engine was fully covered by the warranty (the warranty cost $1,000 on top of the price of the used car, however).
I am finally a happy camper. Got to know the service manager and his engine tech real well also. I think we all got an education. This is a fairly small dealership in a small town out in the boonies, and they rarely see a Toyota engine failure, so this was all new to them.
Merritt