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When I coast my automatic, it's when I intend to stop a ways ahead and engine braking is too much deceleration. I leave it in neutral until the light turns green, there seems to be a significant reduction in fuel consumption idling in neutral vs. idling in drive.
I've also pushed it back into drive while still coasting occasionally, and it doesn't seem to do anything bad, but I hesitate to do it regularly.
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I'm not coasting, I'm shifting slowly.
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