Read it at: http://snedekerdesignz.com/learn/tutorials/blender/carbrakes/
Preview:
Enjoy this TUT I wrote 
Cool! It can be done in the GIMP too.
What a fast reply!
I know, I just had Paint Shop Pro open and did it though there because I’m more comfortable with it than Gimp. 
Thank you BTW.
Thats awesome man keep up the good work. I’m definatley using this technique!
Is it not a little unnecessary to create an entire other texture for them? Why not a smaller texture that consists only of the brake lights’ area? Saves quite a bit of resources, especially when you start having more and more cars in your game.
Hmmm, you mean crop the second image to only the small area? Never thought of that, thanks!
@zoot: thanks!
Very good car.
I hope that will result from it shall be a great game.
Please do not disappoint us.
Mmmm, im kinda in love with that car model at the moment!
Very nicely done. Bit high poly, but necessary to get it looking that good. And im sure the new GE can deal with it fine.
…Oh and nice tutorial btw.
Thanks 
Go to the tutorial and at the bottom is a link to the car model download.