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I have a 745 diesel estate with auto trans.
the o/d can be selected any time but only actually comes in about 35-37mph- when the auto is in top(3rd) gear. I very rarely find a need to NOT use the overdrive except for up hills or overtaking- (but then mine being a diesel will not rev much over 3000anyway)
A further change (effectively a 5th gear)comes at 55mph when the torque converter locks out. This seems to happen whether you are using the o/d or not.
I hope this may be of some help. I really don't now just how it works , but mine has 175000 miles on clock but drives like new!!
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