I would advise checking the elements as well. It is possible that plastic has melted onto the elements. Try to Identify which slot the smell is strongest. If there is a spot where the elements do have some sort of foreign material melted to them, you may need to replace them.
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Most times this is caused by a build up of crumbs in the bottom of the toaster. There is a small electo magnet that holds the lever down, if it gets covered in crumbs it won't work. Take it outside turn it upside down and bang the heck out of it till everything comes out. If this does not work then check and make sure the magnet is still attatched inside. Other than that, this toaster gets terrible reviews from folks with issues just like yours. I can only assume the electronics are failing on these units far to quickly. It can be repaired if yuou send it in to the manufacture but that is really not economical. I hope the upside down banging cures the problem.
It is possible that the heating coil has burned up on one side and the contacts are open. so if you can open the cover and get access to the coils then check continuity so as to join the burnt lines .
This will make the heating coils to work.
make sure that you join the open wires with only thermal resistance wires.
It can be repaired.
There is a short circuit inside may be of dust gathering on contacts or the contacts are worn out due to prolonged use thus touching the heating coil or body some where inside. Smell coming is definitely burning of wires inside.
Open the toaster and you may be able to see the burning spot
We have the same problem after only about 20 uses. The customer service number is 1-800-688-1989...we may be able to get it replaced. If they aren't willing to do anything, I'm thinking of filing a complaint with our state Attorney General because there are SO MANY complaints of the SAME, idential problem from thousands of consumers!!!!
The same thing happened to me today and I've been searching the internet for other complaints. It happened exactly as you said, I heard a buzzing noise and went to see what it was and it was the toaster- smoke started to come out from the top. Please report your experience to the CPSC! http://www.cpsc.gov/index.html This thing needs to be recalled!
It sounds like the heating sensor is longer functioning and the toaster is probably kaput, unless you can find an independent repairman who works on small appliances. In my own experience even a pricey toaster last about 3-5 years. I had the same problem with the same brand, just a different style