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How to Use Automotive Keys Properly Automotive keys are available in various styles. Certain keys have transponder chips in their heads. Others are flat and work mechanically through grooves on the tops and bottoms. Early car keys were easy to duplicate, but manufacturers later introduced a chip that stored a unique"password" for your vehicle. adds an extra layer of security against theft. Transponder key A transponder, also known as a chip key, is a unique key for cars that has an embedded mic