Keyless entry works, but keyless ignition doesn't.

When you say "keyless entry works", do you have to press the remote button?

Is your 2007 a base model or does the door handles have a little rubber piece you can press (this locks the doors)

 

OP, those are the first questions to answer if we are to help.

 

Under your steering wheel, on the dash is a small button labelled KEY. This enables/disables the SKS function. The button must be in the out position for the key to work from your pocket. If the button is in the "in" position, it disables the SKS function and you have to insert the fob into the slot.

 

There is a receiver that's in the center console that controls the ignition start. Maybe the wires got loose. You can remove the rear cup holders and you'll see the SKS receiver in there. It's the size of a credit card. The rear cup holders just pop off with a little bit of force (or use something plastic to pry it off, that way it won't scratch it)

See attached picture, it should be inside after you remove cup holder

 

Another thought before you start pulling things apart - have you tried replacing the battery in the remote?

 

Wondering if you found the issue.
Yes, best DIY first action, replace the FOB battery.
FWIW, perhaps the sensor on the brake pedal; in other words, if your step on the brake pedal firmly will the car start with the FOB in your pocket?

 

It is possible, since the car is new to you, that the remote you have is a replacement and not programmed fully and correctly to the car. If simple troubleshooting does not solve the problem, I would take this up with where ever you purchased the vehicle.

If an original key is not available, it may require a Toyota dealer or licensed auto locksmith to have new remotes properly seeded to the car (in which case you should have two done so you have a back-up if you ever lose one. Reseeding is a costly procedure.)

 

The Smart function might be on, but when you insert the key fob it will deactivate the smart function. Press the smart button In and press again to turn on smart function.

Posted via the PriusChat mobile app.

 

Where do you get this idea? It is certainly not supported by the excerpt from the manual that you attached.

The "Key" button is simply a deactivate function. When the button is in the "In" position SKS is deactivated. When the button is in the "Out" position, SKS is activated. There is no change to this regardless of whether the key fob is in or out of the key slot.

As pointed out in the manual, the primary purpose of the deactivate function is for when the car will be locked up and not used for an extended period of time. For example, when parked up at the airport. The purpose is to reduce the current load while the car is in "stasis".

The best advice so far is that from JC to check the SKS receiver at the back of the center console (and also the connectors and wiring back to the ECU, which are also candidates for failure). This is the one used to detect that the key fob is in the car. If the car cannot determine the key is in the car, it will not start.

 

If your car works to lock and unlock your door using SKS functions, then it'll work to start your car. If the car is not starting, the area of fault is in the receiver mechanism inside the center console.

If it's a problem with the keyfob itself, you won't be able to use the functions to lock/unlock your doors

 

That's not guaranteed to work, as there are other places (wiring). But that's the cheapest and easiest culprit to change out first. Any junk yard or person parting out a Prius will have this part. I don't know the exact name for it though