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How to Use Automotive Keys Properly Automotive keys come in different styles. Certain keys have transponder chips incorporated into their heads. Others are flat and operate mechanically using grooves on the bottoms and tops. Early car keys were easy to duplicate, however manufacturers later introduced a chip that stored a unique “password” for your vehicle. This adds an extra layer of protection against theft. Transponder key A transponder, also known as a chip key, is a specific key for cars wi