a little red light in the wood sounds like an aftermarket alarm..... the stock alarm should have a red light in the center air vent on top of the dash....
if the light comes on when you lock the car, the alarm should be armed...... to test, roll down a window, lock the cars driver door with the key, wait a few minutes, and reach inside and open the door..... the alarm should go off.... to reset, unlock the driver door with the key