Can someone explain to me the concept of using a relay and a little basic information on how these operate?

In a nutshell, a relay determines how much electricity goes to the device. i.e. You could have interior bulbs that don't require the full 12 Volts from the battery to operate, so, a relay will reduce the voltage via a small magnetic coil, to light the interior bulbs without the full ampage from the battery, and so saving energy/life of the cars battery.

A relay is an electricaly - operated switch,
A, a relay can switch a heavy current remotely from the circuit in which the current is flowing, allowing the use of lighter guage wiring and switch contacts.
B, a relay can recieve more than one control input, unlike a mechanical switch.
C, a relay can have a timer function - for example, the intermittent wiper relay.

mmmmk so basically it works just like a step down transformer but has the 'switch' function. however how does the switch go on and off? If we take a look at this picture



How is the circuit complete once you push the button?

When you turn the key to position 2 the current goes through the start button (if pressed) and connects terminals 30 and 87. Then position 3 gets the needed current to start the engine as it would when starting with a key.
Hope this helps.

yes i finally understood the concept of the relay. One last question! Sorry but i'd like to do this properly. Since i am placing the start button instead of the cig lighter, does it make sense to use the 12v wire to the cig lighter as the wire to 85 on the relay instead of making another splice to the ignition wire?

I think it should work just fine with the cig lighter 12v wire but the button would be powered all the time.

Between 85 and 86...the curly bit is a coil which causes the switch to move over
So when you press the button it energises the coil which makes it move

Its not a transformer.....you have one side which in my case at work has high voltage and then the side with the switch is low voltage

Yes it would be connected only when you press the button. I was just wondering if the switch has a light and when the light is on.

If you wanted a light connect it to 87 for only when car is running or ignition on
Connect to 30 for all the time

the switch has in fact got a light. I would connect the light terminals to anything that switches on with ignition...i guess...

Or connect to 87a to only have the light on when the car isn't running

sounds like a plan

Erm... yh sound all good to me