What does a chipped key do? (Audi A4)?

Q: What are the benefits, and features of a chipped key on a 2004 Audi A4? What does it do? By the way, I experimented by removing the back portion of the key (the part with the battery and the buttons) and just used the part with the actual metal key (the laser cut portion)... the other half was placed a few miles away from the car and then the metal portion (just the key part) was used to start the car and drive it successfully.... I still dont get what a "chipped key" has added to my car...

A: From what I can tell with mine it just holds the information for the keyless. One of the keys I got from the previous owner got wet and no longer works, but like you said the actual key part still starts the car fine. Im pretty sure its just a way for you them to charge more for a replacement key. FYI, if you get a new key you can program it to your car yourself and get it cut much cheaper at a VW dealership.

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