Member Trustme is the bloke to speak to, he is a locksmith.

It does sound like your chip has gone missing, probably when somebody changed the casing and forgot to transfer the chip across...?

 

Well i looked at images of same keys online and nothing seems to be missing. But maybe you know what i need to look for specifically???

Thank you for your reply!

 

From what you have posted, your immobiliser is not being switched off by the remote key, you have to bring the spare key nearby of the antenna to pick up the coded chip. As the immobiliser is still responding to the spare key, it suggests that there is nothing wrong with the antenna/BSI, the fault is in the key.
Keys have a chip in them that is coded to the car, something like this one.. ID46 Transponder Chip for CITROEN C2 C3 C4 C6 PEUGEOT 407 307 807 1007 PARTNER | eBay. This sits in the key case. Common problem is people replace the key case with one from fleabay and forget to transfer the chip across, or replace the battery and dont notice the chip falling out... Have a look in your remote key for this chip. If you can open your spare key, have a look for the chip and swap it into your remote key if its chip is missing, then get a new chip burned.

 

Holding the remote button is for resyncing the remote locking the starting side of the key is a coded chip that can only be coded by planet as above sounds like your key is missing its chip or the chip has died

 

Ok
If indeed I am missing the chip, does this mean I can only go to a Peugeot dealership or can I just buy new chip and replace it?
Sorry if this sounds ignorant!

Thanks again for the help

 

Forgot to mention that I can not open spare key(not remote).

 

207 has a flip key so the chip is on the same board as the remote rather than a separate chip like older models.

Member called trustme is your best bet he will know whats your best option

 

So the best conclusion ...my chip is dead.
What is my cheapest option???

 

Peugeot flip keys have the transponder on the remote pcb, these keys sometimes go faulty and it the gold transponder transmitter that fails, sometimes soldering them works, sometimes swapping transmitter works but the option I do is clone another working key onto a carbon chip and put it in with remote only problem with that is if you program another key at a later date it will delete remote out because the remote transponder is a copy of another key then. You could just get another key