Does rekeying a Car reduce value?

Does this key have a chip? How old is the vehicle?

Non-manufacturers key may have some slight reduction, but otherwise I wouldn’t expect it to matter much. The theft would likely be more concerning.

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Would a dealership be aware of the theft during a trade in?

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Carfax will include vehicle theft information if it has it.

I’d imagine it’d be a minor hit considering the circumstances as you’ve explained them. Key wise, I doubt it matters that much, but considering it’s still less than $1000, I think it’s worth going with the dealership.

Are you planning to dump it soon? I’f not then what’s the worry