Solved: 2001 S60 $400 key problem for $17

 paul1149 » Along the way one of my keys stopped working. It would operate everything at ignition position I and II, but it brought a “Start Prevented” error when trying to start the engine. That left me with one operating key, and with thoughts of the cost of being towed to the dealer and having 2 new keys cut if it went bad. The dealer had quoted me “$400, and don’t hold me to it” when I priced a replacement key.

I came across various ways to purportedly make the defective key work again, involving rapidly repeated cranking attempts, but the dealer cautioned me against confusing the onboard electronics, which would be even more expensive to correct. I heeded the warning. It wasn’t working anyway.

In a forum I came across the idea, which was ignored, of removing the transponder from the working key, taping it to the ring antenna, and then using cheap replacement keys without the transponder. Brilliant. But when I dissected the non-working key, I concluded that removing the transponder in one piece was a very difficult job.

So instead I used the whole key. I don’t have pictures, but this helpful video by Peppermint, who I believe posts here, shows the way the ring antenna is situated and how to get to it:

You only need to take off the upper steering column shroud, which snaps right off without tools. I found the best position for the key was directly on top of the antenna, key blade facing forward. I had to experiment to see which side of the key should face outward. Once I found the correct side I taped it in place with gorilla tape, and snapped the shroud back on. I tested the idea with my non-functional key, with the working key out of proximity, and it worked perfectly.

Then I went to aliexpress and ordered two new keys without transponders. Cost, about $3.25 per. Then I added their key cutting service, $4 each. Total, about $17. My keys came five weeks later, and they work perfectly.

By doing this, I am neutralizing the anti-theft aspect of the Volvo’s transponder keys. But considering the age of my vehicle, and the security of having extra keys, that’s an easy trade-off.