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Maybe. But on the other hand, a flashing LED (or even a real alarm with an LED indicator) will indicate to theives that there's something in the car you felt was worth protecting. Thus, making it a greater target.

It's funny, I have a Volvo with a factory alarm and the flashing LED on the dash looks out of place. The dash is tan, and the bezel around the LED is black so it looks pretty odd. Kind of funny because it's the factory alarm.
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Mark Cushman