Option 3:
Credits to EisnerRacing
http://www.m3forum.net/m3forum/showthread.php?t=294907 E36 alarm light flash option
Factory e36 95 - 99 alarm systems are made by Alpine and aftermarket alpine alarm system gives you a audioable alert for arming and disarming as well as a light flash.
Factory bmw alpine alarms do not flash the lights on arm and disarm only if the alarm is triggered.
I have owned two differant cars and have done this mod to each. I just got a 97 M3 and here is the walk thru. The job takes about 30 -45 min, $8.00 and when you are done and arm the alarm the lights with flash and when you disarm they will as well.
YOU WILL NEED:
6 - female spade terms(18 ga)
4 - 6 " wire black, red, blue and white(18 ga)or what other colors you have
crimpers
black elec. tape
zip ties
phillips screw driver
olfa knife
Ok first remove the under dash and locate the brain right about the passenger kick panel. Black 5x8 box with a green connector.
unplug the green harness and just abouve the fused yellow wire cut the black cover that covers the wire about 3 inches away for the plug end. Just a single slit is fine. pull out the wires.
now locate the red, dr. green and yellow these are siren(red) lights(grn) and 12v constant(yellow)
now you need a single pole double throw automotive relay 20 - 30 amp is fine. you can find one at any auto store for $5.00
wire the relay like this with 6" of wire
86 to blue
87 to red fuse this wire with 10 amp fuse
85 to black
30 to white
make a fuse holder with two female spades
ok now move back to car an attach the following relay wires to car wires(no need for diodes the factory alarm has them internal)
Relay - car
blue - red siren (-) output
white - Green parking lights
red - yellow 12v
black - yellow 12v
basiclly its a negitive to positive switch from siren to lights - this will not interfere with parking lights or flashers
after connection plug the main harness back into the brain and test remote and make sure they flash. The car should chirp 4 time due to door being open
now wrap the harness back up with black tape and zip tie
now your done - when you arm the lights flash once and dis-arm lights flash twice