You've Been Warned: This Car Dealership Service Could Be A Waste Of Money

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Because dealerships are the official intermediary between customers and car manufacturers, they are the best place to get certain services. For instance, dealerships are the only place you can get warranty-authorized free (or discounted) repairs; they can also do recalls for free, install OEM software updates, and they're really good for buying certified pre-owned cars. That said, there are lots of sneaky ways car dealerships try to make more money off you, and sometimes the services they offer can be quite expensive.

For example, paying a dealership to program a replacement key fob may seem like a reasonable investment if you lost your fob. After all, having the people who sold you the car handle that problem seems simple. But the cost difference between dealerships and alternatives will make you pause. Most dealerships charge between $150 and $400 for a basic replacement and programming. Honda East Cincinnati, for example, estimates that a key fob replacement and programming will cost from $149 to $459 plus tax. If your car uses a smart key, that number may go even higher.

Meanwhile, automotive locksmiths and independent shops often estimate that programming the same type of fob will cost between $50 and $250. In the end, the dealership only offers branding and shunts the overhead costs to you in its pricing. Unless your vehicle is under warranty or requires a proprietary manufacturer-only procedure, programming a key fob at a dealership is one of those "official" services that might not be worth the extra cash.

We generally recommend that you don't buy key protection from a car dealership. But if you already did, it might make more sense to let the dealership sort out your key fob replacement. For everyone else, though, there are cheaper alternatives.

For a start, retailers like Batteries Plus and Ace Hardware try to make services like this attractive to customers, and they advertise fob programming for much less than the dealers. Batteries Plus even claims it can save you up to 50% compared to dealership prices, while Ace Hardware promotes similar discounts through its KeyStart program. Alternatively, Costco hosts events where customers can get keys replaced at their local store for less money — and in less time — than a dealership.

If you need a mobile solution, the best might be an independent automotive locksmith. National networks and local locksmiths frequently charge $50 to $250 to program a replacement fob, which is much less than the dealer's $150 to $400 range. Since they can meet you wherever you are, you will also save money on towing fees. AAA offers locksmith services to members, which is one service that could make AAA perks worth the membership price.

Lastly, you can go the DIY route by purchasing a fob from eBay and trying to program it yourself. However, depending on the car, you may also have to buy additional tools that could make the investment more expensive.