Should be no trouble whatsoever. You're going to a lower ratio tire, and going from 65 to 55 isn't that much of a change, but it might give the Avalon a very slightly aggressive look. You wouldn't want to go smaller than 55 tho. You might end up getting too low for clearance.
But there shouldn't be any trouble whatsoever.
Call up Discount Tires if in your area, and talk to guy, ask him. They're pretty smart about stuff like this. Guy or gal might even give you some pointers about what you're trying to accomplish with lower tires.
So overall, you do lose a little bit of mpg, not noticeable, because as someone said, the tire is rolling less than with larger tire. But it's of no consequence.
The advantage is that it gives car a little more aggressive look to it, sitting a inch or so lower.
I have an old 1991 Geo Prizm (fake corolla), that I put 185/75's on and it raised it up a lot, but helped it to roll like crazy. But then that size became too hard to get, and have to resort to usual size of 175/70's, and it sits low enough that it makes it hard for me to get out of car now. Funny.
But your change shouldn't be any trouble at all.
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