Totota Financial Services dumps unsafe vehicles on market

In December 0f 2000 we purchased a 1997 Camry V6 with 37,121 miles from a reputable dealer. The dealer buys Toyotas, Hondas and Porches at New England auctions and resells them. We received a 90 day warranty and had the car checked by two mechanics. The car ran smoothly until we took a long distance trip from Mass. to Vermont. The check engine light came on and it began to run rough. We made it back and took it to our mechanic. By then the 90 day warranty had elapsed but we were not worried because Toyota has a 60,000 drive train warranty.

Our mechanic found three cyclinders that were substantially below compression and plugs that were fouling. We emailed Toyota of USA who directed us to Clair Toyota of Boston. Their evaluation was that the engine had large amounts of sludge and the warranty was therefore voided. At this time we had the car for less than 4 months and had the oil changed at purchase.

Subsequently we took the car to two other dealerships, Boch of Boston and Herb Chambers of Auburn, MA with the same results. We contacted the dealer who was just as surprised but since the 90 day warranty had expired we decided to contact Toyota of USA again. We received a flat No to our request to be put under warranty. Our research found that this car was privately leased through Toyota Financial Services. When we asked if the lessee had properly maintained the vehicle and if not did they accept responsibility of releasing the lessee from the maint. clause in their contract we received no answer.

Further correspondence from Toyota Financial Services explained that the car had be turned in good condition and sold as is at auction. Toyota also stated that they sold Certified Used Vehicles and if this had been one of them it would have been covered.

Our investigation discovered that you cannot sell a consumer good in New England and disclaim the Implied Warranty of Merchantibilty which they have claimed to have done selling as is. Also we looked up the web site for Toyota Fin. Svcs and found the requirement for cars to be labeled Certified Used. Our car met the criteria. Why wasn't our car sold as Certified and not dumped at auction? Toyota knew about the sludge which can seize an engine up and falsely sold it as a reliable safe car.