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How to Use Automotive Keys Properly Automotive keys come in different styles. Some have transponder chips inside their heads, whereas others are flat and function mechanically via grooves on the tops and bottoms. Car keys of the past were easy to duplicate, however later, manufacturers added an electronic chip that contained the unique "password" for your car. This adds an additional layer of security against theft. Transponder key A transponder or chip key is a unique key for cars that has a microchip