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It's probably low on freon, try adding some using a recharge kit available from autoparts stores, it could also be a problem with the a/c magnetic clutch relay located in the fuse box under the hood.
Look under the car when it stops and after the engine is turned off, do you see a lot of water dripping under the car on the passenger side? If so the AC evaporator core is freezing up and the pressure switch is defective. If scenario this is not the case then you may have either a sticking compressor magnetic clutch relay or the magnetic clutch closing coil is shorted when it is hot.
I would check the following possibilities: 1. Is compressor clutch working? - You need to do this when the ac is blowing hot air only - locate compressor drive pulley on engine - rubber belt wraps around it. Start engine and set to max ac. When the ac is blowing hot air, look at the center of the compressor drive pulley using a good flash light - watch it for a while, it should be spinning with the pulley - this means the compressor is engaged. If not, the compressor is not engaged. If your ac is blowing hot air, then the compressor should be engaged and running (trying to cool). If it is not engaged, then your compressor clutch is probably going out. Could be low voltage to clutch, but more likely the clutch is worn out and only working some of the time. Note: if working normally, the compressor clutch will engage and disengage in cycles- but the air should always be cold. If clutch is bad, compressor would need to be replaced (sold as one unit). This is tricky to diagnose and could take some time - you need to do it when ac is blowing hot air but set to max cooling.
2. Low on refrigerant or refrigerant has moisture in it? If your ac blows cold initially after being off for a while, then heats up, and continues to regularly cycle back and forth between hot and cool air, then the system may be low on refrigerant or the refrigerant may have moisture in it that is freezing and restricting refrigerant flow. An a/c shop can check refrigerant level and even replace refrigerant if moisture is suspected.
Could be other issues, but I would start with these.
You may need to recharge your AC. The AC clutch relay seems to be a high failure item for this car. You can test by swapping relays under the hood. The AC clutch relay is located next to the negative battery post in the fuse box under the hood on the driver's side fender. It is the smaller relay marked "M/G CLT". This is available from Rockauto.com, $11.
Replace your magnetic clutch relay. TSB EL011-05 : A/C LIGHT FLASHING - MAGNETIC CLUTCH RELAY 6/3/2005 - 2001 – 2004 Toyota Camry, ECHO, & Celica. 2002 – 2004 4Runner, Corolla, & MR2 Spyder. 2003 – 2004 Matrix, Sienna, & Solara. This bulletin is to provide information regarding countermeasures to the A/C magnetic clutch relay for A/C light flashing (inoperative A/C) issues on some vehicles equipped with a magnetic clutch compressor. Applicable Warranty*: This repair is covered under the Toyota Comprehensive Warranty. This warranty is in effect for 36 months or 36,000 miles, Whichever occurs first, from the vehicle’s in-service date. * Warranty application is limited to correction of a problem based upon a customer’s specific complaint
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