New Key
That's quite strange. My dealer only charged me $22 for a new key. Are you sure they weren't talking about the FOB? Of course, if they were, my dealer quoted me $300+ and actually suggested trying eBay.
Fob is the remote control with the buttons. My dad just had a new key cut by a locksmith (although he did have to do a bit of running around trying to find someone who specialized in that sort of key), it wasn't very expensive. I guess it depends whether your car has the transponder keys or not. His didn't obviously.
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