Comprehensive guide to Toyota Highlander lemon law claims, common defects, NHTSA recalls, and your legal rights as an owner.
Model years covered: 2020-2024
The Toyota Highlander has long been a staple in the midsize SUV segment, known for its practicality and family-friendly features. However, the 2020-2024 model years, which introduced the fourth generation (XU70), have seen a significant number of consumer complaints and safety recalls. While many owners enjoy a reliable driving experience, a notable percentage have encountered persistent defects that significantly impair the vehicle's safety, use, and value, leading to numerous lemon law claims.
The most prominent issues reported by owners involve the 8-speed automatic transmission paired with the 3.5L V6 engine (2020-2022 models), which frequently exhibits harsh shifting, hesitation, and shuddering. Hybrid models have also faced scrutiny for unpredictable braking behavior during the transition between regenerative and friction braking. Furthermore, critical safety systems, including airbag deployment mechanisms and occupant classification sensors, have been the subject of major recalls, raising serious concerns for families relying on the Highlander for safe transportation.
If you own or lease a 2020-2024 Toyota Highlander and have experienced recurring problems that the dealership has been unable to fix after multiple attempts, your vehicle may qualify as a lemon. Understanding your rights under state and federal lemon laws is crucial. You may be entitled to a full repurchase (buyback), a replacement vehicle, or a substantial cash settlement, with the manufacturer covering all legal fees.
Total recalls: 15
The 2020-2024 Toyota Highlander has been subject to several significant safety recalls. One of the most widespread issues involves the front lower bumper cover, which can detach while driving, creating a road hazard (Recall 23V720000). This recall affected over 750,000 Highlander and Highlander Hybrid vehicles from the 2020-2023 model years.
Another critical safety recall addresses the airbag system. Certain 2020-2023 models were recalled because an electrical connection inside the steering column's spiral cable assembly may be insufficiently welded, potentially deactivating the driver's airbag (Recall 23V480000 and subsequent re-recall 25V040000). Additionally, a recall was issued for the passenger airbag occupant classification sensor, which could fail and prevent the airbag from deploying in a crash (Recall 23V865000).
More recent recalls include issues with the second-row seat backs failing to lock into position (Recall 26V128000) and an instrument panel software error that can cause the display to go blank, failing to show vehicle speed and warning lights (Recall 25V595000). In total, the 2020-2024 Highlander generation has accumulated approximately 15 safety recalls.
View all Toyota recalls and NHTSA safety alerts
Toyota has issued numerous Technical Service Bulletins (TSBs) for the 2020-2024 Highlander to address common owner complaints that do not rise to the level of a safety recall. A significant number of these TSBs focus on the 8-speed automatic transmission, providing software updates and diagnostic procedures to address the widespread reports of hesitation, harsh shifting, and shuddering at lower speeds.
Other notable TSBs address issues with the hybrid braking system, providing guidance to technicians on resolving the inconsistent pedal feel and transition issues between regenerative and friction braking. There are also TSBs related to the infotainment system freezing or rebooting, wind noise around the A-pillars and mirrors, and various interior squeaks and rattles. These bulletins are crucial for dealerships to properly diagnose and repair the recurring issues that often lead to lemon law claims.
Toyota has faced significant legal scrutiny regarding defects in its vehicles, including the Highlander. While specific class actions solely targeting the 2020-2024 Highlander's transmission are still developing, Toyota has a history of settling large-scale defect litigation. For instance, the company previously agreed to a $1.6 billion settlement concerning electronic throttle control issues across various models.
More recently, a class action lawsuit was filed alleging that Toyota falsely advertised certain vehicle models as being free of clear coat and paint damage. Additionally, there are ongoing investigations and potential class actions regarding the 8-speed transmission hesitation and shudder issues prevalent in the 2020-2022 Highlander V6 models.
In individual lemon law cases, owners of defective 2020-2024 Highlanders have successfully secured buybacks and cash settlements. Attorneys report high success rates (often exceeding 95%) when pursuing claims for documented, recurring defects such as transmission failures, braking anomalies, and unresolved safety recalls, with settlements frequently covering the full purchase price minus a mileage offset.
Your Highlander may qualify if it has a substantial defect that impairs its use, value, or safety, and the dealership has been unable to repair it after a reasonable number of attempts (usually 2-4, depending on your state) while under the manufacturer's warranty.
The most frequent issues leading to lemon law claims for the 2020-2024 Highlander include transmission shudder and hesitation (especially in V6 models), braking system malfunctions in hybrid models, and various electrical or safety system failures.
Compensation varies based on your state's laws and the specifics of your case. Common outcomes include a full repurchase (buyback) of the vehicle, a replacement vehicle, or a cash settlement. Buyback amounts typically range from $30,000 to over $45,000, depending on the purchase price and mileage offset.
While some cases can be resolved in as little as 30 to 60 days, most lemon law claims take between 3 to 6 months to reach a final settlement or buyback agreement with the manufacturer.
In most states, including California, the lemon law requires the manufacturer (Toyota) to pay your attorney's fees and costs if you win your case. This means you can typically hire a lemon law attorney with no out-of-pocket expenses.