It's supposed to be ON under ALL normal driving circumstances. You only turn it off during specific situations called for in the owner's manual.
Turning OD off switches off the topmost gear of your tranny (as well as all gears with a gear ratio of less than 1.000). So if you have a 4 speed A/T, you have just turned it into a 3 speed. If you exceed the allowed speed range, you can overheat and destroy the tranny.
That is the reason why a warning lamp illuminates when you turn it off. Because it's supposed to be on.






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