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We have a gauge on our race car that requires 12 volts of power.Our cars battery is 16 volt battery. Do we need to step down the voltage going so it does not burn out?

Yes, you will need to step down the voltage going to the gauge to prevent it from burning out. Since your car battery provides 16 volts and the gauge requires 12 volts, you will need to use a voltage regulator to reduce the voltage. A voltage regulator is an electronic device that maintains a constant voltage level, regardless of variations in the input voltage. By using a voltage regulator, you can ensure that the gauge receives a consistent 12 volts of power, preventing it from damage.