Dodge Durango Forum : “Should my Durango stay in AWD when driving to and from the city?”

"N" means that the differential is in neutral. You should probably make sure it is in 2 wheel drive if you're driving
to and from town. And yes, it does get a LOT better gas mileage when not in 4X4. Plus, that could really damage
your vehicle's drivetrain as well.

with the way they are built now i doesn't really matter... you can drive in four or two nothing is going to happen/....

take care

Your truck is AWD which means it's always sending power to all 4 wheels.  There is no 2wd option for you

If you put in "N" your Durangp will not move

I have a 2000 Durango and have it in "N" most of the the time the only time I have ever put it in 4x4 is in the worst snow storm we had this past winter just to be safe.  I have found that gas mileage is great

The Durango is an Al Wheel drive vehicle when you put in AWD it is powered by the rear wheel but if you need more grip it will automatically start to use the front wheels along with the rear wheels.  If you put it in N then you won´t move at all since that means neutral on the Transfer case that dived's the power from the transmission to the wheels.  In 4WD you lock the transfer case so it is always using front and rear but if you use that on paved roads you will damage the diffs or/and the T-case.   4WD low is used when you need to get up steep hills or when you are towing very heavy objects but again not to been used on hard surfaces only in snow, gravel, mud, sand or Grass or you will damage the truck.