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With an auto in a fuel injected car, it will help. In neutral, there is less load on the engine, so it can throttle back and feed less fuel to maintain the same idle RPM. With a carb, the difference is minimal, as the throttle is basically unchanged, just the RPMs due to load.
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Call me crazy, but I actually try for mpg with this Jeep:
Typical driving: Back in Rochester for school, driving is 60 - 70% city
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