I purchased this car new 175000 miles ago. Until recently it was driven in the Chicago area. Moved down south to Texas last year. Last week I noticed an exhaust leak and took it in for a look see at a dealership. The following is a estimate from the dealership: The corresponding parts needed to fix the rusted exhaust system on your 2008 Prius with tax is $2866.25 and $591 for installation. My technician did also notice some with smoke coming from the exhaust pipe which may be caused by coolant leaking into the combustion chamber. To verify this, would require additional tests. So long ol friend RIP
$3300 sounds like a total rip-off. I suspect the word "dealership" has something to do with it. I would find a non-dealership repair shop, and check the internet for parts prices. Parts.com has the parts for $1650.00 total (still a rip-off). Napa Auto Parts has it all for about $800 or less. If you're handy you could save your baby for a few more years... The smoky exhaust could be diagnosed with a diagnostic cable and Techstream software (on Ebay for about $25).
Take it to an exhaust/muffler workshop and get another quote. Don't tell them what the dealer quoted.
An aftermarket exhaust system is certainly a reasonable possibility. More troubling is the visible exhaust emissions. What is the color of the smoking exhaust: white (which implies coolant leaking into the combustion chambers) or black (which implies oil burning, maybe a rich air/fuel ratio)? Did the engine overheat at some point in its history? That would cause a warped cylinder head and a leaking head gasket.
I had a garage quote me $465 for an aluminized steel exhaust installed. He figured I'd get 3+ Buffalo winters out of it. Where you live this would be a life time exhaust. I'm just driving loud at the moment waiting to see what else breaks.