Why Losing Your Keys Could Cost As Much As Your Monthly Payment

[stevebausch]

Why Losing Your Keys Could Cost As Much As Your Monthly Payment

See More Articles
from this Author
How much do you suppose it would cost to replace that set of car keys in your pocket? A few bucks? Dream on.
If it’s a “smart” key, it could easily cost you $200 to $300 -- or more.
Many vehicles today have immobilizers that lock up a car’s ignition, fuel and steering systems unless a transponder in the smart key transmits the correct electronic code. Thus, thieves are deterred from stealing your car by using a makeshift key, but the downside it that smart keys aren’t cheap.
The $600 Blunder
Alex Rudloff found out the hard way. A couple of months ago, Rudloff -- an AOL executive who lives just south of Cocoa Beach, Fla. -- lost both sets of keys for his 2008 Volkswagen Passat sedan.
The VW dealership in neighboring Melbourne told Rudloff that he’d have to transport the car to the store, where a technician could program a replacement key to work with the car’s onboard computer. That proved to be a difficult task. Alex purchased an un-programmed spare key that was supposed to let him shift the transmission into neutral. It didn’t work.
Then he tried to slide a dolly under the wheels, so that a tow truck could take it to the dealership. But the car was parked too close to the garage’s right wall, and he couldn’t get the dolly into position.
Finally, the tow truck operator located the Passat’s shift override, a yellow button under the shifter. He put it in neutral, dragged it onto the flatbed and took it to the dealership.
Adding up the cost of the key, the programming and the tow truck, “it was a $600 mistake,” Rudloff says ruefully.
Legal Challenge
Three years ago, the high cost of replacement keys attracted the attention of Weiss & Lurie, a Los Angeles law firm that filed a class-action lawsuit against VW. In 2008, VW settled the suit after it authorized independent repair shops to sell replacements. However, the settlement hasn’t had much impact on the cost of keys sold by VW or any other carmaker.
Prestige Volkswagen in Melbourne tells me that it charges $156 for a replacement key and $105 to program it.
We did some comparison-shopping, phoning German Concepts, a used-car dealership in Osceola, Ind., that is one of 37 independent stores authorized by Volkswagen to replace keys. We were told that they charge $260 for the key and programming -- virtually identical to the price charged by Rudloff’s Florida dealership.
It’s not just Volkswagen that charges an arm and a leg for its smart keys. Porsche dealers charge $380 to replace and reprogram a key for the Cayman, and even a mass-market brand like Ford will charge $85 for a Fiesta key plus $85 for the programming.
“It’s a monopoly, and there’s nothing you can do about it,” says Jesse Toprak, an industry analyst with the consumer Web site TrueCar.com, who once coughed up $380 to get a replacement key for his 2007 Mercedes SLK.
Some automakers do allow independent repair shops to issue replacement keys. For example, independent locksmiths can replace Toyota keys if they purchase key coding equipment and pay a monthly fee. But there aren’t enough locksmiths in the car key replacement business to create competition, says Clarence Ditlow, executive director of the Center for Auto Safety, the Washington, D.C.-based consumer advocacy group.
In 2006, the center surveyed 50 models and found that the average dealer price of a smart key was more than $150. The center unsuccessfully petitioned the Federal Trade Commission to probe the auto industry’s key replacement policies.
Passat’s shift override, a yellow button under the shifter.

Security Concerns
For security reasons, automakers don’t want to turn over their key code software to any locksmith that asks. “You could be giving it to a thief,” Ditlow acknowledges.
But he says automakers could create a secure nationwide key code storage system that would allow authorized locksmiths to use VIN numbers to look up key codes.
“You don’t have to license every shop. You would license just enough locksmiths and shops to create competition to lower prices,” Ditlow says.
Maybe so, but today there doesn’t appear to be a reliable source of cheap smart keys. To be sure, you can find a motley assortment of keys on eBay, that paragon of online capitalism. Recently, someone in Arizona was auctioning a Toyota Prius smart key, which (if new) would cost $195.
So let’s assume you got a nice discount on that eBay key. The folks at Dunning Toyota in Ann Arbor, Mich., told me they were willing to reprogram it for $100. But they warned me that it was a crapshoot -- sometimes those used keys can’t be reprogrammed.
In its 2006 testimony to the Federal Trade Commission, the Center for Auto Safety issued a similar warning. Caveat emptor.
Right now, the best consumer advice is this: Don’t lose your keys. Rudloff says he’s learned his lesson. “We bought three new keys, and we put one in a safe,” he said. “Keys are getting too fancy. Let’s leave it at that.”

[stevebausch]

Registration with Drivers License and Mercedes has you a new working key in 24 hours or less. Less than $100. All they need is the VIN to make the key.

Is this true? Is there any hope that Mercedes will apply this policy to Smart cars? Or will it still take 2 visits and $300 to the dealer to get a key cut?

[JPaul]

FYI, more at:
Lost Key Pricing Update (a/k/a DO NOT LOSE A KEY!!)

[stevebausch]

When I purchased my car, the dealer talked me out of getting a smart key. He said that if I lost the key and needed a replacement, It would cost $200-$300 for the first replacement, and might go higher for a second-time loss. He suggested an alarm--and not the alarm that was offered as an option on the car (Camry). He said it's best to confuse any potential crooks; they may get/have some kind of work-around for Toyota alarms. If I have a different brand, it gives me a bit of an edge--and he suggested I put a general "equipped with an alarm" sticker on the window if I put any sticker on the window at all. Why tell them what kind of alarm you have? I appreciate that guy very much, especially since my last car was stolen (another Camry).

"It would cost $200-$300 for the first replacement, and might go higher for a second-time loss", sounds like Smart.

[stevebausch]

I just had an incident with a jeep cherokee where there was no spare and the key was lost. The jeep dealer told us the only way it could be done was to have the car towed to the dealer that no locksmith could do it, as the key had to be programmed and only the dealer can do that..... but to tow the car without the key was impossible, according to everyone as there is no way to put the car into neutral without the key.. we found found a locksmith that would come to the car we just needed to get the key code from jeep, which we had to fight with them to get and, also the program code, jeep told us that the car would not start if the locksmith did it and that the car would be locked up for over 4 hours and would still have to come to the dealer to be reprogrammed. the locksmith came got the car opened in 2 mins and with some sort of handheld device that plugged into the car somewhere put the program code in and I'm in the car driving away in less than 5 mins but 350 dllrs poorer.. absolutely no towing involved nor any dealer, only now no smart key unless I buy one which they can make but just didn't have with them at the time unless i wanted to wait 2 more hours while he went to get one.......The dealer out and out blantantly lied.

Pretty much the story with World Wide Motors here in Indy.... I asked about the cost of a replacement key, and nobody was willing to tell me the total cost, the two trips to the dealer, the "call ahead so we can get a special number from Germany" crap.

Mercedes doesn't put their owners through such an ordeal, why does a Smart dealer think they can?

Is Smart car ownership a simple matter of owning a car, or belonging to a cult?

[jwight]

What is the point of this discussion? The replacement key cost issue is well known and not, as pointed out in the article, unique to smart. Apparently the FTC didn't feel it was worth looking into, so read and heed: don't lose a key.

[jetfuel]

...most rent a cars I hot rod or get stuck in the sand have a nice sticker on the key fob.."minimum replacement key cost $125"

jetfuel...just saying...

[rfernatt]

Vehicles owned: Dozens
Lost keys: Zero
Vehicles with expensive replacement keys: Most
Minutes spent on this discussion: One too many!

Edit: And, if it's a Prius, it might get totaled: Don't lose your key if your Prius is in a parking garage...

[stevebausch]

Originally Posted by jwight

What is the point of this discussion? The replacement key cost issue is well known and not, as pointed out in the article, unique to smart. Apparently the FTC didn't feel it was worth looking into, so read and heed: don't lose a key.

Not to my dealer, the guy in the showroom AND the parts guy couldn't answer my questions of replacement cost, how to replace a key, etc. The most infuriating aspect of it was I ASKED about the cost and details, and they basically refused to tell me the total picture, it was basically "I'm not sure" etc.

If the dealer's employees don't know, or refuse to answer direct questions, maybe Smart should have a scripted response provided to their employees, and have a FAQ on their website, itemizing the cost and explaining the steps of key replacement.

In the medical profession, there is the concept of Informed Consent, but car dealers don't want to 'fess up to the costs of buying a car with a 'smart' key...

[mdfortwoguy]

Originally Posted by stevebausch

Not to my dealer, the guy in the showroom AND the parts guy couldn't answer my questions of replacement cost, how to replace a key, etc. The most infuriating aspect of it was I ASKED about the cost and details, and they basically refused to tell me the total picture, it was basically "I'm not sure" etc.

If the dealer's employees don't know, or refuse to answer direct questions, maybe Smart should have a scripted response provided to their employees, and have a FAQ on their website, itemizing the cost and explaining the steps of key replacement.

In the medical profession, there is the concept of Informed Consent, but car dealers don't want to 'fess up to the costs of buying a car with a 'smart' key...

You should find another dealer.