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When you are coasting and want to keep/gain speed than put it in neutral. When you are coasting and you need to scrub speed leave it in drive or downshift into 3rd or 2nd, and right before you stop, even use 1st. When the engine is braking the car (with or without the friction brakes), then the fuel is cut off completely.
Coasting in neutral you can get 200-350mpg, depending on the speed, and you will can carry this as far as possible, so sometimes a mile or more. Coasting using the engine for braking gets you "infinite" mileage, but you can only get this while slowing down, so the distance is limited by definition.
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