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When you say "warning light is on", I assume you are not talking about the oil pressure gauge...
If not, here is your solution:
What you have is a very common problem: The oil LEVEL sensor has failed. Previas have 2 sensors; pressure & level of the oil in the pan...What you need to do is replace it, Toyota part number : 89491-28030.
BUT...This part is $380.45. Not cheap; Sorry but true.
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Did you prime the new pump with some engine oil? Another trick is to use some light grease to coat the pump gears so they will seal against themselves. If you primed the pump and are sure the pump is working, you may have worn out engine bearings or some internal oil leak that is keeping the oil from getting pressure.
Your vehicle may have an "oil level" sensor built into the oil pan. If so, and the sensor is bad, the dash will constantly tell you that the engine needs more oil even if it does not. Checking the oil with the dipstick, a minute after the engine has been turned off on level ground is always the best way to check your oil. Try scanning the vehicles computer systems to see if there are any fault codes. The warning light may also be on a timer that just needs to be reset. The "Check Oil" light should be separate from the engine oil pressure warning light. As long as the engine oil pressure light stays off, you should be ok. Checking the oil pressure with a manual gauge would be a good idea as well.
most of these models have 2 oil lights.The red one is oil pressure,if flashing or on when engine is running,it is usually serious.check oil level,but usually caused by blocked pickup screen(a common toyota fault) when services aren't done.The orange oil light is tripped by an oil level sensor on the side of the sump when the oil level is low.If the oil level is ok,note this is a common fault especially if oil changes have been missed,and/or a petrol engine oil used and sludge builds up,sometimes using an additive for flushing prior to oil change can help,but may not work on 1st oil change.
probably the oil sending unit. get a Haynes manual for your vehicle. It will help you locate the sending unit. You can get the replacement unit at Advance Auto.
If the light is flashing there could be problems with the electrical wiring. The easy places to check are at the bottom of the oil reservoir (pass. side under the hood) and at the driver side of the oil pan under the vehicle where the wires plug into the sensor. If this doesn't resolve the problem then it isn't easy, and testing the circuit will have to be done by someone who knows their electrical "stuff." Even the pump motor for the reservoir could be out.
If the Oil Level Sensor light stays on and you have already checked to make sure the oil level read on the dipstick under the driver side seat engine compartment is reading adequate, then you have a sticking oil level sensor float. Replacing the oil level sensor is easy, but extremely expensive ($485 in 2012). You can try to clean the plastic spool that the float slides on, but the problem is usually that it has swollen or expanded (likely from heat in the oil). One could try to sand it down but this would be difficult. I have made a new part out of nylon 6/6 on my lathe and replaced the plastic spool so far with excellent results. I'm considering selling it as an aftermarket part when I see if mine works. It would be a lot less than $485 dollars from Toyota. Or possibly have people send it to me and I'll repair the sensor myself.
First verify that battery is fully charged (>11volts), the throttle
is closed, the transmission is in neutral, and all accessories like
radio/fan/defog/etc. are off. The engine should be warm but not running with key off. Under the driver's seat there is a diagnostic connector box. Flip open the cover and on the inside of the cover you will see a chart of the terminals. Use a small jumper wire (or a paper clip) and connect the TE1 and E1 terminals together. Now turn ignition switch to on with key but do not start. Check engine light will now blink code(s), for example: three blinks followed by a pause and then two blinks is the code 32. Copy down the codes and check back here. The code(s) will repeat in order until you turn key off. Don't forget to remove the jumper wire before driving.
the red light indicates low oil pressure, check your oil and add as
necessary, if it still comes on you have some type of restriction in an
oil passage somewhere. the reason it only comes on when turning is
because when turning the fluid level shifts in the oil pan and if it is
low it is moving past the pick-up tubeand you only pumping air
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