Remote keyless entry systems have penetrated the vehicular market due to its convenience. However, its vulnerability against relay attacks exploiting the wireless channel is a serious threat. One of the prominent countermeasures is radio ranging between the key fob and the vehicle. Taking into account radio regulations, usability and power consumption among other things, a suitable approach is necessary to devise. This article proposes sub-GHz two-way ranging based on phase detection which offers high tolerance against reference clock offset between a pair of transceiver devices and a novel compensation scheme against multipath effects. We present the operation principle and theoretical performance under a two-path model of radio propagation and additive white Gaussian noise. In field experiments with prototype devices, the ranging accuracy is validated. We show that the proposed ranging produces sufficient performance for remote keyless entry systems, confirming if the key fob is within a few meters of the vehicle.