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Here is the deal......
The key has a chip in it ( a little pill)... It recognizes the car, so it unlocks and starts the car. The led lights up because the battery and keyless are sending a signal.
It doesn't do anything because it is not synced to the car. Bad news is, if you don't have the code, you need to buy a new key. Another bad thing, the dealer programs them for $125 a key or something silly. Good news is, if you buy 2 keys- bribe them to do both keys for the price of 1. It only takes a few more minutes.
The ignition switch doesn't click back cuz it is broke. This is an easy fix. $20 part or less. Also an Audi or vw part. The ignition switch is itself (tumbler), is fine.
Also, the key blades pop out of the key head, so you can re-use these.
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