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Originally Posted by slls
The toggle is for easy rearm, if you disconnect the battery you will need to do the yellow wire cut again, with engine running.
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Yep, if you just simply cut the yellow wire and didn't use the resistor method, if the battery is replaced or dies, the car will never start until it "sees" the correct code again.
This is true for the toggle switch too. The only way the toggle will work is if the rest of the system still works. The problem is that normally the decoder in the ignition switch fails so all you are doing is putting the car in "fail, bypass mode". So, if the decoder competely fails, you have to jump or change the battery and you try your toggle switch, the car still won't start because it'll never get the correct code. This is why using the resistor method is 99% failsafe.