Good to know. Thanks for the reply.

The remote keys cost so much because they contain 3 features:

• EWS immobilizing system that uses a transponder that has an ISN (individual serial number) that is burned intoit at the factory and is unique to you car based on its VIN. That same ISN is burned into your EWS control module and DME/ECU...if the ISN doesn't match in all the EWS components the vehicle won't start.
• FZV - remote central locking
• DWA - antitheft alarm siren system

All the other keys also have an EWS transponder in them...again, this is why the dealer is usualy the easiest place to get a key.

There are some places that have people that have invested in equipment that can retrieve your ISN, then burn the iSN into a new transponder chip....but then you have to find a key that has the correct blade and also find a keysmith that can correctly cut the blade to fit your ignition and door lock cylinder.

As written in the black box above the plastic key...it says "spare"...which means it's a spare key. :)


It should also be described in your owners manual...BMW used to give the owner 4 keys at purchase...I'm not sure that occured later in production...it my have been cut back to 3 keys:


BTW...BMW mentions that the plastic key isn't made for continous use...because they know that some owners aren't that careful, and would throw it in their pocket...and since it's made of plastic...the blade could bend as it's stuffed into their skinny jeans...then they'd try to stuff the bent blade into the ignition or door cylinder...and this repeated rough usage could destroy the key. Thus they suggest to use this key sparingly...basically as an emergency key.

what? I need a new one, too :(

Try a different dealership. I ordered one from our local and it was ~$180 after tax. Was going to buy 2 but I repaired the battery in the one that came with the truck so have 2 good ones now...

Here's a cheaper alternative that works fine for me ...
I bought the car (2001 x5) last month with just one diamond key, nothing else.
- To get EWS (starting the car) capability, you may as well get it from a dealer. All the independent options are about the same or higher than what I found here: I got 3 non-remote keys from http://thebmwminipartstore.com for about $40 each for non-remote keys, or $120 for a diamond key (I did not get that one because instead ...).
- To get remote functionality, I bought 3 used OE diamond keys off eBay for about $50 for all 3. The blades on those are useless, so I cut them off with my Dremel tool. The EWS chips will not work to start the car. But they can very easily be programmed to work for keyless entry, etc. (i.e., as a traditional key fob).
- So I pair the new non-remote dealer keys with the salvaged eBay key fobs and I'm good to go for about $60 per pair.

If I had bought the car for $50k, spending $500 on a few keys might seem reasonable, but ...