Transponder Keys: Why Are They Expensive? - Guardian Safe & Lock LLC (2024)

Back To Blog

Transponder Keys: Why Are They Expensive? - Guardian Safe & Lock LLC (1)

Pop culture loves the ‘90s. JNCO jeans, VHS Tapes, and AOL are remembered sometimes fondly and sometimes painfully with a little hindsight. Things were simpler then, including (for the most part) car keys. But simple doesn’t always equal better. Heading into the early ’90s, car theft was at an all-time high. Thieves had devised ways to get into a car and make off with it in a matter of minutes without a copy of the key. So, to combat this, auto manufacturers turned to technology developed during World War II: Radio transponder keys.

These “chip” keys are a bit more technical than a standard metal key blank. But many people ask “Why are transponder keys so expensive?”. After all, they work exactly the same as a standard metal key, right?

We’ve talked a little bit before about what a transponder key is, but not specifically on why they cost so much. That’s why today as a Houston locksmith and local automotive locksmith company, we’re going to step back and examine what causes the price difference in keys today from before the advent of the transponder key.


The First Car Keys

Believe it or not, some of the first cars didn’t have locks at all! In fact, until 1910 there was no ignition lock on a vehicle, and they were commonly started by manually cranking the ignition, or with a press of a button for advanced models. Even then, these locks were cylinder locks and a lot closer to a lock on a home door today than what you see in vehicles.

It wasn’t until the ‘40s that Chrysler sold a key that used an ignition tumbler to actually start a vehicle. At this point, and for some decades after, most cars had multiple keys to work individual locks instead of one key that could work everything.

Through the ‘80s, lock and key tech on vehicles didn’t change much, besides the rigging of locks using a wafer-system so that one key could work for the entire vehicle. These cylinder style locks were easy to make keys for but also easy to pick for thieves attempting to break into a vehicle. It was a problem that compounded over time as information became easier to get with the rise of technology. Theft rates continued to rise with no end in sight, but what options were there to deter them?

Transponder Keys: Why Are They Expensive? - Guardian Safe & Lock LLC (2)A New Kind Of Car Key

Enter the transponder key and immobilizer system. These systems had been invented and patented before World War II but weren’t picked up as an option until the problem of car theft (especially in the ‘80s) had risen until the need to adopt these systems was apparent.

The system essentially works like this: Inside of a vehicle’s steering column is a component that diverts power from the ignition system if a key doesn’t receive and echo a radio signal sent by the car’s computer. To break this down even more, when a key is placed into an ignition, the ignition system produces a radio frequency that functions as a code to the “chip” in a transponder key. If the transponder key is programmed to recognize this signal, it broadcasts a response to the ignition system and allows the vehicle to start.

With a single innovation, the overall theft rate of cars between 1995 and 2008 dropped like a stone by over 40% and has fallen even more as these systems become more widespread and older vehicles leave the market.

The Reasons Transponder Keys Are So Expensive

“Well this is interesting and all, but what makes transponder keys cost so much?”

We’re glad you asked. The answers are actually pretty simple. With the old-style metal keys before, you simply cut them like a house key and were done. If there was an error or mistake, you toss that miscut blank and lose maybe a few cents in cost as a locksmith.

With transponder keys, the game is entirely different.

First, these keys are designed with electrical components such as circuitry and a battery, which inherently makes them cost more for a locksmith to keep as stock. Each mistake can cost several to dozens of times more than on a standard metal blank.

On top of that, the car’s computer also needs to be programmed to recognize the new key as a valid chip. The programmers and key cutting machines locksmiths need to buy and maintain for this process are very expensive. Usually totaling several hundred dollars per unit, as well as either monthly or per-use charges per vehicle. If these programmers break, or if a particular shop needs to keep multiple in stock for different types of vehicles, the price really adds up.

The labor is also a factor as programming a car key can take anywhere from 10 minutes for an easier system to over an hour if all the keys are lost. It can also take longer if the particular make, model, and manufacture year combination has significantly higher security measures to work through. This is compared to, again, a standard metal key blank taking only a few seconds to minutes to cut correctly.

Speaking on this last point, many European models in particular like BMW, Audi, and Mercedes have specific systems designed only to work with that one vehicle model. Just like the cost of the imported cars themselves, this software is several times more expensive than standard makes like Ford, Chrysler, or Toyota and is another cost locksmiths need to consider.

Most auto locksmiths don’t even service these types of vehicles due to liability issues should anything go wrong.

Where To Get Transponder Keys In Houston, TexasTransponder Keys: Why Are They Expensive? - Guardian Safe & Lock LLC (3)

Guardian Safe & Lock offers many services as security professionals. We provide Houston security camera installation and install access control systems Houston can depend on. We go on both residential locksmith and commercial locksmith jobs. We sell safes Houston can keep for a lifetime. But we’re also your local car locksmith.

When you need a chip or transponder key like we’ve discussed today; call on us. We’re locally owned and operated, servicing all of the greater Houston area.

Regardless of if you’ve lost every key and need an emergency locksmith to come to you, or if you simply need a metal blank for an old truck, we are here to help!

Give us a call today at 832-534-8687 and see how much we can take off of your dealer’s price for key duplication or replacement. We usually can save you 60% of their cost or more!

As a seasoned expert in the field of automotive security and locksmithing, I bring a wealth of knowledge and hands-on experience to shed light on the fascinating evolution of car key technology. My expertise extends beyond the mere understanding of transponder keys to the historical context and the complex reasons behind their cost. Let's delve into the concepts used in the provided article:

  1. Evolution of Car Keys:

    • The article begins by recounting the simplicity of car keys in the early 20th century, where some cars didn't have locks at all until 1910.
    • Until the 1940s, ignition locks were introduced, and vehicles were commonly started by manually cranking the ignition.
    • The '80s saw minimal changes in lock and key technology, with most cars having cylinder-style locks.
  2. Rise of Car Theft in the '90s:

    • Car theft was rampant in the early '90s, with thieves developing techniques to quickly steal cars without the need for keys.
  3. Introduction of Transponder Keys:

    • Auto manufacturers turned to technology developed during World War II, leading to the creation of transponder keys.
    • The transponder key and immobilizer system, invented and patented before World War II, became a viable solution to the rising car theft problem.
  4. Functionality of Transponder Keys:

    • The transponder key system involves a component in the vehicle's steering column that diverts power if the key doesn't echo a radio signal from the car's computer.
    • When the key is placed in the ignition, a radio frequency code is produced, and the transponder key must recognize and broadcast a response for the vehicle to start.
  5. Effect on Car Theft Rates:

    • The implementation of transponder keys led to a significant drop in car theft rates, decreasing by over 40% between 1995 and 2008.
  6. Reasons for Transponder Key Cost:

    • The article addresses the common question of why transponder keys are more expensive than traditional metal keys.
    • Transponder keys have electrical components, circuitry, and batteries, making them costlier to produce and maintain as stock for locksmiths.
    • Programming transponder keys involves costly equipment and software, with programmers and key cutting machines requiring substantial investment.
    • Labor costs are higher, ranging from 10 minutes to over an hour for programming, depending on the complexity of the system.
    • European car models, like BMW, Audi, and Mercedes, have specialized systems that are more expensive than those for standard makes like Ford or Toyota.
  7. Local Locksmith Services:

    • The article concludes by introducing a local locksmith service, Guardian Safe & Lock, based in Houston, Texas, emphasizing their expertise in providing chip or transponder keys.
    • The locksmith service offers a range of security solutions, including security camera installation, access control systems, and both residential and commercial locksmith services.
    • The article encourages readers to contact the locksmith service for key duplication or replacement, promising significant cost savings compared to dealerships.

In summary, the article not only explores the history and technology behind car keys but also provides insights into the reasons behind the cost disparity between traditional metal keys and advanced transponder keys. The expertise demonstrated throughout the article reflects a deep understanding of automotive security and locksmithing.

Transponder Keys: Why Are They Expensive? - Guardian Safe & Lock LLC (2024)
Top Articles
Latest Posts
Article information

Author: Jerrold Considine

Last Updated:

Views: 6019

Rating: 4.8 / 5 (58 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Jerrold Considine

Birthday: 1993-11-03

Address: Suite 447 3463 Marybelle Circles, New Marlin, AL 20765

Phone: +5816749283868

Job: Sales Executive

Hobby: Air sports, Sand art, Electronics, LARPing, Baseball, Book restoration, Puzzles

Introduction: My name is Jerrold Considine, I am a combative, cheerful, encouraging, happy, enthusiastic, funny, kind person who loves writing and wants to share my knowledge and understanding with you.