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YES you should be using overdrive. If you've been doing a lot of highway driving without it being in overdrive you're probably losing a good few mpg's. The only time you shouldn't be running in overdrive is if you're driving at a speed where the transmission keeps shifting between 3rd and 4th, probably 30-35 mph, varies for each car. Also going into neutral will not hurt anything.
You're not very knowledgeable with autos are you? Dot worry, you'll learn a few things here and elsewhere.
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'05 Outback XT, 19 mpg
BP-turbo 93 Festiva (long gone)
1/4 mile - 12.50@111.5
Best MPG - 36.8
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