If you had a code reader it may show there...I also have heard that ignition switch does strange things when it is on the fritz. It is a cheap replacement item and you can DIY.
Where can I get a code reader (think I have seen them on ebay?) Also, when you say cheap, what is an ignition switch worth? I thought that would be expensive and difficult to replace (would be matched to the key etc?)
You can replace just the electronic switch portion (not the keyed part). It's a VW part, and I think it's about $20. Search on this forum for more details.
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'01 Boxster S, 51k miles
'05 Mazda 6 Grand Touring Wagon
Lots of places on FleaBay selling them for $20 or less. Avoid a seller called DeutschePartsUSA; they've got a bad rep.
Pelican Parts sells two brands, both less than $20. One is rated "poor," the other "average" for quality. Not too encouraging. Think I'd go with the better unit from PP.