The red silicon sleeve on the end is to terminate it and ensure it doesnt short itself on anything. If its for an aftermarket alarm for example, this could be for future add ons like full closure etc. Its just part of the loom but not in use at the original state. It shouldnt be live at the other end, but if the other end was connected to power, the sleeve ensures it doesnt earth itself, and blow anything except you when you remove it without removing the battery!