Is it bad to shift car into neutral while moving?

Answer 1

pushing slowly around a parking lot or repair shop lot...no. towing ..always tow with drive wheels off the ground. "coasting"...placing transmission in neutral at highway speeds and coasting downhill, for example, very bad for transmission and also illegal in most jurisdictions. Reason: lubrication of internal components is considerably reduced and results in abnormal wear and early transmission failure. Coasting is classified as not having the vehicle under proper control because of the lack of engine braking capability, and also not being able to accelerate immediately if such action is required. Hope this clarifies the issue.