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You must have an auto trans. That hose nipple would be connected to clutch master cylinder in a manual transmission car. Fluid level goes down as brake pads wear. When you install new pads the pistons get pushed back in which pushes fluid back into the master cylinder. Have a nice trip.
 

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Wait, I had a lapse. The 1996 had a cable operated clutch. No hose needed. That nipple on the reservoir should be blocked off. Sorry about the wrong info.
 
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