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Nitrogen has a few nice characteristics. Airplanes as well as race teams have used nitrogen for years.
The #1 benefit is the best benefit by far though.
#1. Nitrogen filled tires won't see the increase in psi as the tire heats that compressed air does, this means you don't have to estimate out as much for hot temps vs cold temps. (Some rise will occur but its MUCH less)
#2. The rubber in the tires won't oxidize being that the oxygen has been removed from the equation, the air is also cleaner as it's been filtered and won't have moisture and such which can damage tires and rims to at least some degree.
#3 Tires don't have to be refilled as often. (I'm assuming this is because nitrogen is by nature a larger molecule and can't escape as easily through rubber which is somewhat porous) Seems to me that they leak about 60% less (don't quote me here).
#4 MPG, however this claim is made only assuming that a person doesn't refill a typical tire often enough and it runs low where a Nitrogen tire wouldn't have gone low as quick.
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