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Spare Nissan key won't work

Tried to use the spare key we have with our 4 year old Nissan note today (bought from new) and it won't work the alarm. I can physically unlock with the key but buttons don't work. Also, it will not start the ignition. Called Nissan and they want to charge £135 to recode the key.

Does anyone know whether a key should lose its code simply through not being used? Is there any alternative options?

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