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How to Use Automotive Keys Properly There are a variety of styles of automotive keys. Certain keys have transponder chips embedded in their heads. Others are flat and work mechanically using grooves on the bottoms and tops. Car keys of the past were easy to duplicate, however later, manufacturers introduced an electronic chip that contained the unique "password" for your vehicle. This adds an extra layer of security against theft. Transponder key A transponder, also known as a chip key, is