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City driving is ; driving at slower speeds, stopping at various stop lights, sitting at stop lights. City driving (as opposed to highway driving) is considered harder on the car, it wears out faster. A car usually has two different fuel efficiancy ratings (mileage) - since city driving takes more energy, the mileage for 'city driving' is lower than for 'higway driving', where the car travels for longer distances without having to constantly stop and go.
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