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Overdrive is an extra gear assembly in the transmission that allows the engine to run at a lower speed (lower RPM) when you are travelling at higher speeds on the highway or freeway. For example, if I am driving my 1995 Explorer at 62 mph in drive, the engine runs at 2800 RPM. If I am driving at 62 MPH in overdrive, the engine runs around 2100 RPM.

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