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Since 2001, Volvo required software updates to the security module to accept a new key. There is no 'work-a-round' that I am aware of. The physical part of the key is cut according to the VIN, the imbedded chip is what gets programmed along with the remote function.
$400 is an outrage and you should call Volvo and nicely complain to the New Jersey folks. Also send them an Email.
I also fault you for buying a car with only one key and not lowering the price accordingly.
Klaus
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There is no present time, just the past and future
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