Need some help here. I recently bought a 2006 v50 t5 m66 manual car for $1500 but knew I was getting the car with the key error message and wouldn't be able to start it. Upon buying the car I thought ok no problem ill throw an ignition switch in it and call it a day. Wrong. So wrong. Since buying the car a week ago, I have put a new OE ignition switch in it and it did nothing, a fat waste of $400 by me for shotgunning parts. I thought maybe it needed a key reprogram since that was another common thing I had seen online an one of my keys work with the car and the other one I got didn't work at all. Had the car dropped off at Volvo dealer and the tech had said he thought it needed a key reprogram, which essentially means buy a new key for $220 and then software for programming for $140 and the $193 for an hour to do it all. Somehow my bill came out $520. The car still doesn't start and its only functions are Showing the message Key error try again. When I put the key in, the steering also doesn't unlock. Before I spend dismal amounts of money on this car I would like to hear some of the thoughts of the community and what modules could affect this error message.

I have also attached the vida read out from volvo.

 

If the problem is what I think it is, the dealer was hugely dishonest and/or inept by sending you down the replacement key rabbit hole.

Check out this thread for more info. In a word, the SCL (Steering Column Lock) module is notorious for getting gunked up, and refusing to unlock the steering column. You get that error code and can't start the car.

The solution (that I used...) was to "simply" drop the SCL module, clean and lube it, and reinstall it. That lasted several years, and then acted up again (with the new owner). I helped him out by doing a quick drop and clean / lube - takes only 15 minutes or so once you don't have to deal with the anti-tamper mounting bolts (mine didn't have them, but may have been worked on before).

 

2005 V50 wouldn't start, Message "Key Error - Try Again". Interior lights were on, but not the radio or the dashboard as such. On dashboard just minimal lights. When turning the key, I faint motor noise could be heard.
1) Changed key battery (we only have one key). Didn't work.
2) Disconnected the car battery, waited 15 minutes, reconnected. Didn't work.
3) Tried tapping on the key part that goes into the key hole. Didn't work
4) Pried the little flap of the key hole open to blow air into it (no tech available, just the plain old way of blowing forefully into that key hole). Car started!
The insertable key part felt a little "moist" after. My assumption: some moisture/condensation build up (it was around 1-3 C and wet and windy), some gunk build up? Thanks for posting the many tips here, everyone! It did help me greatly and saved a lot of worry and costs. Appreciate it greatly, I hope my posting might help some of you too!