Well depending if your the original owner of the car and had your vehicle serviced at the Toyota dealership you might get some price cut. If not so and you haven't taken care of the vehicle and don't have much or any service history with them your out of luck. If your going to have the motor replaced and you don't like the dealerships price go to a non dealer shop and have them do it. The pricing sounds correct from what your saying. The warranty won't be as long with a non dealer ,but if you need a motor to get back on the road that would be the better route.