Purpose of overdrive in automatic transmission?

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Lower final drive ratio=better fuel economy.

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Just like 5th gear in a manual 5 speed.

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To save on engine wear and gas.It lowers your engine RPM's and reduces fuel consumption,it benefits the most on interstate travel.

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Overdrive is not a feature of automatic transmission. Overdrive was fitted to cars with manual gear boxes 30 odd years ago, before the introduction of the 5 speed box.

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It improves gas mileage at higway speeds. That makes Al Gore happy.

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This feature allows you to save on fuel, especially on the highway. It reduces the torque but increases the speed! It is available in both auto and manual transmissions

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whenever your cruising above 50 miles an hour,it takes the strain off of the tranny and motor and also helps to save gas.

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Wow. I can't believe some of these answers. Someone even said automatics don't have overdrive? Just wow...

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"Generally speaking, overdrive (OD) is the highest gear in the transmission. Most automatic transmissions have 3 speeds and overdrive (fourth speed). Overdrive allows the engine to operate at a lower rpm for a given road speed. This allows the vehicle to realize better fuel efficiency, and often quieter operation on the highway. When you switch it on, you allow the transmission to shift into overdrive mode after the certain speed is reached (usually 70+ km/h - 45+ mph) depending on the load). When it is off, the transmission shifting is limited to the lower gears. For normal driving conditions, operation of the overdrive should be enabled only if the average speed is above 70 km/h."

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Overdrive on an automatic is not like the overdrive on a manual vehicle. The overdrive on and automatic is in fact a torque converter lock that stops the torque converter slip that occurs on every "fluid flywheel" until it is locked. This in effect drops engine revs to sustain the same road speed when cruising at pre determined speed set by the manufacturer by locking the outer part of the converter to the part of the converter that takes its drive from the engine drive plate. It is automatically disconnected in normal driving when the conditions dictate and needs no driver input. The OD on off switch is fitted for when the vehicle is towing or climbing hills so the driver can switch it off.
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