Tap a category to read its complaints. One report may name several components.
When problems were reported
Mileage at the reported incident
Limited mileage data: 10 of 40 reports include usable mileage. There isn’t enough coverage to show a useful chart.
NHTSA’s mileage field refers to the reported incident, not necessarily the filing date. This shows report counts, not the likelihood of a failure.
What to inspect
Issues worth paying extra attention to based on owner reports.
Air Bags. Review the 7 owner reports in this category and discuss these concerns during a pre-purchase inspection. Read reports →
Engine And Engine Cooling. Review the 4 owner reports in this category and discuss these concerns during a pre-purchase inspection. Read reports →
Suspension. Review the 4 owner reports in this category and discuss these concerns during a pre-purchase inspection. Read reports →
NHTSA owner reports · September 18, 2026 snapshot.
11 crash reports4 fire reports8 injury reports
What owners actually said
40 reports
41,800 miles · Jan 15, 2004
Engine And Engine Cooling
OIL SLUDGE 1996 TOYOTA TERCEL. THE MOTOR STARTED TO KNOCK. THE DEALERSHIP PICKED UP THE CAR AND SAID IT WAS A LACK OF MAINTENCE PROBLEM. MY HUSBAND HAD DONE THE MAINTENCE. THE OIL LOOKED LIKE SLUDGE. I COULD NOT AFFORD TO FIX THE MOTOR SO IT WAS REPOSED AND SOLD AT AUCTION FOR ABOUT $3,000. WHICH LEFT ME TO PAY THE DIFFERENCE I …
Read full complaint
OIL SLUDGE 1996 TOYOTA TERCEL. THE MOTOR STARTED TO KNOCK. THE DEALERSHIP PICKED UP THE CAR AND SAID IT WAS A LACK OF MAINTENCE PROBLEM. MY HUSBAND HAD DONE THE MAINTENCE. THE OIL LOOKED LIKE SLUDGE. I COULD NOT AFFORD TO FIX THE MOTOR SO IT WAS REPOSED AND SOLD AT AUCTION FOR ABOUT $3,000. WHICH LEFT ME TO PAY THE DIFFERENCE I AM STILL PAYING FOR THE CAR. I WAS IN LPN SCHOOL AND PREGNANT AT THE TIME THE CAR BROKE DOWN. FROM WHAT I UNDERSTOOD ON THE LEMON LAW WAS THAT THE CAR HAD TO BE IN THE SHOP 5 TIMES FOR THE SAME CONDITION BEFORE THE LEMON LAW WOULD APPLY. I ALMOST MISCARRIED MY THIRD CHILD AND WAS ADVISED BY MY DOCTOR TO GET RID OF MY STRESS SO I DROPPED OUT OF SCHOOL AND FORGOT ABOUT THE CAR. I HAVE BEEN READING ABOUT THE TOYOTA OIL SLUDGE PROBLEM AND I BELIEVE THAT IS WHAT HAPPENED TO MY CAR. HERE IS THE LIST OF PROBLEMS THAT MY CAR HAD. 11-20-97 O-RING AND SEAL, 12-15-97 TRANSMISSION LEAK, FRONT PUMP SEAL, O-RING, RR TRANSMISSION AXLE AND REPLACE O-RING, TORQUE CONVERTER, 2-25-98 SLOW TO LOCK INTO REVERSE WHEN COLD AND WAS LOW IN FLUID (DEALERSHIP COULD NOT FIND THE PROBLEM), 3-17-98 SLOW TO LOCK INTO REVERSE AGAIN (DEALERSHIP COULD NOT FIND THE PROBLEM), 11-98 DAMAGE TO VALVE STEAM SEALS, WAVED SURFACE ON TOP OF CYLINDER BOOR, PISTON STRIKING CYLINDER HEAD, SPUN #4 ROD BEARING, CRANK SHAFT DAMAGED, #4 CONNECTING ROD DAMAGED, OIL PUMP PICK-UP TUBE SCREEN PLUGGED WITH SLUDGE BUILD UP, CYLINDER HEAD AND OIL PAN SLUDGE BUILD UP. I COULD NOT AFFORD TO PAY FOR A NEW MOTOR OR FOR A CAR THAT DID NOT RUN. TOYOTA DROPPED MY WARRANTY. MY HUSBAND HAD CHANGED THE OIL. THE CAR NEVER GOT HOT. THE OIL LOOKED ALMOST LIKE BLACK GLUE. THE CAR GAVE ME NO INDICATION THAT ANYTHING WAS WRONG. I WAS ON MY WAY TO SCHOOL AND IT STARTED MAKING A LOUD KNOCKING SOUND SO I CALLED THE DEALERSHIP AND THEY CAME AND TOWED IT. TOYOTA HAS OFFERED TO FIX SOME OF THE TOYOTA'S WITH THE TOYOTA OIL SLUDGE PROBLEM STARTING WITH THE 97 BUT MINE WAS A 96.
NHTSA ODI #10070275
41,800 miles · May 9, 2003
Engine And Engine Cooling
OIL SLUDGE PROBLEM WITH 1996 TOYOTA TERCEL. THE CAR WAS UNDER WARRANTY AND TOYOTA WOULD NOT PAY. CAR WAS TAKEN AND SOLD AT AN AUCTION LEAVING ME TO PAY THE DIFFERENCE. *JB
NHTSA ODI #10018457
Mileage unknown · Sep 4, 2002
Air BagsCrashInjury
WHILE DRIVING 45MPPH HAD A HEAD-ON COLLISION AND DRIVER'S AIR BAG DEPLOYED AND SPLIT DOWN THE MIDDLE, CAUSING SERIOUS INJURIES.*AK
NHTSA ODI #8017911
Mileage unknown · Sep 23, 1999
Service Brakes, Hydraulic
MASTER CYLINDER FAILURE. MANUFACTURER HAS NO REPLACEMENT PARTS FORCING ME TO DRIVE WITH DEFECTIVE BRAKES. THE DEALERSHIP WAS NOT HELPFUL IN RESOLVING THE PROBLEM.
NHTSA ODI #711928
Mileage unknown · Feb 17, 1999
Air Bags
NO DEPLOYMENT OF DRIVERS SIDE AIRBAG DURING VEHICLE COLLISION.
NHTSA ODI #543918
Mileage unknown · Dec 10, 1998
Engine And Engine CoolingPower Train
TRANSMISSION AND THE ENGINE OIL PAN CRACKED, AND ARE LEAKING FUEL WHICH COULD EVENTUALLY CAUSE A FIRE. PLEASE GIVE ANY FURTHER DETAILS.*AK
NHTSA ODI #832137
Mileage unknown · Nov 1, 1998
Unknown Or OtherCrashInjury
OK HERE IS WHAT HAPPENED. WHEN WE WERE RAN OFF THE ROAD WE HIT A SIGN AND BOTH OF THE AIRBAGS IN MY CAR DEPLOYED. WE HAD JUMPED A MEDIAN AND WAS HEADED DOWNHILL. WHEN THE AIRBAGS WERE DEPLOYED A POWDER SUBSTANCE WAS DEPLOYED WITH IT. BEING THAT WE HAD NEVER HAD AN AIRBAG DEPLOY ON US, WE HAD NO IDEA WHAT THIS WAS. MY FRIEND…
Read full complaint
OK HERE IS WHAT HAPPENED. WHEN WE WERE RAN OFF THE ROAD WE HIT A SIGN AND BOTH OF THE AIRBAGS IN MY CAR DEPLOYED. WE HAD JUMPED A MEDIAN AND WAS HEADED DOWNHILL. WHEN THE AIRBAGS WERE DEPLOYED A POWDER SUBSTANCE WAS DEPLOYED WITH IT. BEING THAT WE HAD NEVER HAD AN AIRBAG DEPLOY ON US, WE HAD NO IDEA WHAT THIS WAS. MY FRIEND THOUGHT IT WAS SMOKE AND FREAKED OUT AND WE ALL JUMPED OUT OF THE CAR BECAUSE WE THOUGHT IT WAS ON FIRE. IT SMELT JUST LIKE SMOKE FROM A FIRE. SO MY PROBLEM IS WITH AIRBAGS AND THEM NOT BEING PROPERLY LABELED THAT THIS POWDER SUBSTANCE IS ALSO DEPLOYED. IF WE HAD KNOWN THIS BEFORE MY FRIEND WOULD NOT HAVE HAD TO GO THROUGH MONTHS OF PHYSICAL THERAPY AND HAVE A BIG SCAR ON HER LEG TODAY. MY OTHER FRIEND WOULD NOT HAVE SCARS EITEHR. SO DO YOU THINK IT IS POSSIBLE TO PUT SOME SORT OF WARNING ON AIRBAGS IN THE FUTURE TO PREVENT THESE KINDS OF ACCIDENTS?
NHTSA ODI #700252
Mileage unknown · Oct 15, 1998
Air BagsCrashInjury
DUAL AIRBAGS DID NOT DEPLOY DURING FRONT END COLLISION. HIT DIVIDER AT 60 MPH AND BOUNCED INTO GUARDRAIL. DRIVER SUSTAINED INJURIES.
NHTSA ODI #781252
Mileage unknown · Aug 24, 1998
Fuel System, OtherFire
FUEL LINE FAILURE RESULTING IN EXPLOSION.
NHTSA ODI #539301
Mileage unknown · Mar 2, 1998
Air Bags
AIR BAG DID NOT DEPLOY DURING A 35 MPH FRONTAL IMPACT.
NHTSA ODI #531593
Official recalls
0
No recalls in this snapshot.
Model-level recall history does not show whether a particular VIN is affected or has received a repair. Check a VIN with NHTSA ↗
NHTSA investigations
0
No exact-year investigations in this snapshot.
1996 Toyota Tercel Problems, Complaints & Recalls | Skip That Year