Everyone hit the nail on the head with this one, but I wanted to add my input. In normal stop and go driving, it is better to drop it into neutral and apply your brakes to slow down. By downshifting or even engine braking, you are putting added stress to the engine and specifically the transmission components. Will engine braking mess up your transmission or motor? Not likely. But you might get more life out of your main components by not using it as a normal means of braking.
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