Absurdity in SmartKey Pricing

[nol1dwa]

Here's a letter I wrote to Toyota about the absurdity of SmartKey pricing and their failure to provide customers with and effective and affordable solution.

September 11, 2010
Fletcher V. Davidson
Group Vice President and General Manager, Toyota Customer Services
Toyota Motor Sales, U.S.A., Inc.
19001 South Western Ave.
Dept. WC11
Torrance, CA 90501

Dear Mr. Davidson:
I am writing to you to voice my sincere displeasure over an item which should be very trivial, but instead is a financial burden to many Toyota owners like myself.
I bought a new 2008 Toyota Camry Hybrid in December of 2007. As a family, so far we have enjoyed the car. One of the car’s unique features has been the Smart Key. However, as I told my wife today “if I knew then what I know now, I may have opted to not buy this car simply because of the financial headache this key has caused my family and I”.
About 4 months ago, somehow one of my Smart Keys went missing. At the time, I did not realize how serious a situation that is. In the past, whenever I have bought a new or used car, one of the first things I would do is go get two spare keys as a safety precaution in the event I would lose a key. In this case I did not even investigate this option, because I was not quite sure how I would get spare keys made. Looking back, if I would have gone to Toyota and requested spares I would have realized 2 keys would have cost me $800; which of course would not have been a viable option.
About a month ago, I began trying to replace my lost key by contacting my local Toyota dealer in Round Rock, TX to find out what the cost would be. I was informed a new key would cost me approximately $400. At this point, I began looking on the internet to educate myself a bit on what some more affordable options would be.
It was then I began to realize what a major problem lost Smart Keys are for many Toyota owners out there. I read amazing stories about how valuable these keys are. I came to the realization a whole market has sprung up to fill the needs of desperate Toyota owners with missing keys. I’ll never forget one website where a Prius owner stated his dealership only would give him one Smart Key with his Prius purchase; a second key would cost him an additional $380. Another person speculated over the insanity of a dealer having essentially $80,000 in keys for each 100 cars in stock. Is it even imaginable dealers actually can have hundreds of thousands of dollars in keys at a single dealership? It’s almost to the point that if smart thief broke into a dealership, they would be wise to fill their pockets with keys versus a single car.
It is hard to believe Toyota’s MSRP on Smart Key replacement even come close to Toyota’s cost. At the current Smart Key MSRP, Toyota must have over a 300% gross margin on these keys.
I bought my first car for $1,200 (3 Smart Keys). My Camry car payment to Toyota Financial is $400 per month for 60 months. This means that after five years, I will have fully paid for my Camry for the price of 60 Smart Keys. Today my Camry is worth around $15,000 or 37 Smart Keys. But the ironic thing is that although my Toyota Camry’s value declines your Smart Keys do not. A Smart Key actually holds its value better than a car in that a new Smart Key made several years ago can still sell for the same price without degradation in value.
In order to replace my Smart Key, I took a gamble with what I felt I could afford and bought a used one on EBay for $49. Today I brought it to the Round Rock dealership along with the car to get the two linked. I was advised that the charge for trying to link the key to the car was $59, whether it worked or not. When I dropped the car off, the service advisor told me he has had many people who have tried the same as I was attempting to do and have been sorely disappointed. At this juncture, I felt I had to take a chance since this was my only affordable option, sort of like buying a $108 lottery ticket. I hoped I was going to be the lucky winner of a $108 Smart Key; never in my wildest dreams had I ever imagined I would ecstatically pay $108 for ONE key.
As you probably imagined, the dealer could not link the key with my car. I lost $59 to Toyota Service Department in the attempt and am now trying to get the $49 back from the EBay seller to mitigate my losses. Now I have to determine how I will go about replacing my lost key.
Has Toyota ever considered another option where potentially Toyota could help owners find a key? At the current replacement charge for a key, it would be worth offering a portable RF detector which could talk to lost Smart Keys to help them find their owners. This would seemingly be a win/win situation for both owners and Toyota where Toyota for a nominal fee could help people as a sustainable corporate citizen in situations such as these. Such a program would fall more in line with Toyota’s Environmental Program, than the cost and materials associated with replacing a $400 key. Of course it may not be as financially advantageous to Toyota, but it would be the respectable thing to do.
My purpose behind this letter is to invoke a sense of duty in Toyota’s service policy to offer its owners a more reasonable option than they have today when a Smart Key is lost. Here are some examples as to how Toyota could help it owners:
1. Reconsider your Smart Key pricing/gross margin to make the replacement of this essential item affordable.
2. Offer a portable RF Smart Key detector service owners could use to find their lost keys.
3. Make Smart Keys an option owners can choose at their discretion as an upgrade.
4. If Toyota Service tries to link a key and it does not work, do not charge the owners for something it only takes a few minutes to try.
Please pass this letter along to other Toyota Corporate Executives so they can understand how outrageous the Smart Key controversy is. With all of the bad press Toyota has received as of late regarding quality, and the money spent on advertising to regain an eroding market share, it would be wise of Toyota to not take advantage of its owners like this. Toyota owners such as myself expect to be helped in tough situations like these, not gouged.
If you have an affordable and reasonable solution for me to replace or find my Smart Key, please let me know.
Sincerely,

Dean W. Arnold
Cc Pete Reinhardt, Round Rock Toyota, Service Manager

[98CamryLE]

Okay...

I'm sorry that you lost your Smartkey and were unaware of the cost of a replacement when you purchased your Camry.

When I bought mine, I did research before buying and was fully aware of the cost of replacement when I purchased the car. The dealer also informed me before finalizing the paperwork of the cost of replacement- just so I knew what I was getting myself into.

Since purchasing the car in 2007, I have taken special care in making sure that I am always aware of where both of my transmitters are at all times. One is (of course) on my keyring, which always gets hung on the same hook each night when I get home. The other is locked in my home safe, just so that it doesn't walk off or get misplaced.

If you are seriously considering replacing your key, I would look out for coupons or specials in your dealer's parts department. At least four times each year most of my local Toyota dealerships sends me coupons for 10% or 20% off of any part from their service department. Shop around and see which dealer sells a new remote (either at a physical dealership or online) and then shop around to see if you find one that will program it for the lowest cost. Or, try to get a deal- offering to buy the remote from a dealer if they'll program it for free. Shop around- you'd be surprised at what a dealership might be willing to offer you if you'll give the your business- as there is such a high markup on these keys.

Good luck

[nol1dwa]

I actually did find my key after the letter was sent. I made sure to buy a key finder from ikeyless. So now if my key disappears, I can find it by pressing on a homing device.

This note here is more for people like me who did not realize how important it is to use a key finder, and for Toyota executives to rethink the solutions the don't offer customers when they find themselves in this precarious situation.

[arabianobsession]

Double posting? This is in another section too.....

[Joe B]

$400?

New Smart keys remotes with uncut keys are available on Ebay for $90 or less.With the dealer programming the cost would be maybe $200.


http://cgi.ebay.com/ebaymotors/07-20...Q5fAccessories

[arabianobsession]

Yes but in the other section here on the forum the dealer can't always program it. You pay to get it programmed and if it doesn't then you're out that programmed money.

[Joe B]

Originally Posted by arabianobsession

Yes but in the other section here on the forum the dealer can't always program it. You pay to get it programmed and if it doesn't then you're out that programmed money.

Interesting.
How can a dealer not be able to program the remote?
Because it may be an aftermarket part or same with a OEM remote?

[arabianobsession]

http://autos.aol.com/article/smart-car-keys/

They don't give a reason why it can't be reprogrammed. Maybe because once it's programmed to a certain car it can't be re-written?

[AML]

Originally Posted by arabianobsession

http://autos.aol.com/article/smart-car-keys/

They don't give a reason why it can't be reprogrammed. Maybe because once it's programmed to a certain car it can't be re-written?

Once a key is programmed to a car, it's married to that car. You cannot use an old SmartKey and reassign it to another vehicle.

$400 is a ripoff from your dealer. Call around and find other deals. Retail price + labor for a SmartKey from my dealer was about $350. I managed to get it for $280 total as I was a dealer employee at the time.

Expensive keys such as these are nothing new in the automotive world. Toyota is right in line with their pricing with the rest of the industry. Mercedes, BMW, etc. SmartKeys all cost about as much. You want to know what's absurd? The switchblade key for my 2002 Jaguar is $400. It's not even a smart key.

[Tech1984]

I'd just like to add, I really appreciate the way you guys responded to this guy's rant about smart key.
When I first read the (double) post, I was speechless and couldn't respond in words.
It couldn't have been said any better. A 'thanks' goes to each one of you.

[RedruM]

$400 is not expensive considering whats involved with your smartkey.

First theres the remote it self, and dont forget the laser cut key inside the remote, plus labor and a technicians time to do all this. everyone along the way from China that makes the part, shipping, parts, storage, service they all have to make money. And this is for a smart key.

All regular keys and switchblade keys for modern day cars, they're all in the $400 range. keys today have chips inside them that have to be programmed to the car plus cutting of the key so taking into account you not only have a key but the smart key aswell $400 is cheap.

or just dont loose your keys .

[arabianobsession]

^$400 for a regular key, chip or no, is completely absurd. Our dealer charges $150 including programming.

[98CamryLE]

Originally Posted by arabianobsession

^$400 for a regular key, chip or no, is completely absurd. Our dealer charges $150 including programming.

We are not talking about a "regular" key. The high replacement cost is because it is a SMARTKEY- or as some other manufacturers call it, a "keyless" system. The keyless remote connects electronically with the doors and ignition system- without an actual key being inserted into any lock mechanism.

While I am sure that there is a hefty profit margin on the Smartkeys (as there is on almost any part that is purchased at MSRP), there is certainly a lot of technology involved with these keys that also drives up the cost. (Much more technology than even the most sophisticated "regular"-key system that has an anti-theft component involved.)

[arabianobsession]

Originally Posted by RedruM

All regular keys and switchblade keys for modern day cars, they're all in the $400 range. keys today have chips inside them that have to be programmed to the car plus cutting of the key so taking into account you not only have a key but the smart key aswell $400 is cheap.

or just dont loose your keys .

This is what I was talking about when I said regular key! Cause regular keys WERE discussed

[Joe B]

I can't see why the Toyota smart key fob is so much more expensive than that of a Lexus ES350 smart key fob and metal insert key for $210 list.


http://lexus.sewellparts.com/accesso...S350-2011.html