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The red wire passes the reverse signal up to the front of the car. The camera end has a red and black wire which the red wire gets connected to the reverse light and the black gets connected to ground. Whatever screen you hook up to typically needs a reverse wire hooked up to it too so it knows when to display the camera. Instead of wiring it to the car somewhere, you can use the short red wire. That wire is the same red wire that is by the camera and should be hooked into the reverse light.
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