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When you're towing, you press that button to lock out (OFF) the overdrive gear. This gives you better response and more torque, and keeps you from damaging the transmission from the heat buildup under load from towing. Plus, can actually give you better gas mileage while towing since the engine is theoretically in its power band better and can more easily cope with the load. There's other ways to use it, but that's the main reason why they were included.

When you're not towing, keep the overdrive (ON). It lowers the RPM at which the engine cruises thereby saving gas and reducing wear on the engine.

Now, why they have this function in a car rather than just in trucks, and why they decided to use a separate button rather than just another detent on the shifter, I'll never know.

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Q: What position should overdrive button be in on a Nissan almera tino?
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