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Depends on the gearing and load. Most modern vehicles can tow in OD just fine. In the early days of OD automatics the trannies were somewhat fragile and they tended to gear them too tall.
If you have a truck/van 10 years old or less and it is equipped with a tow package (trans cooler and final drive gear) then you should be just fine.
I have tow about 30K miles a year for the last 15 years using various vehicles including my current clubwagon. I use OD without any problems. You do have to use some common sense and do things like downshift for the longer climbs and not lug the motor and tranny.
Well I'm planing town using my F150, 1986, 4.9L+E4OD, 3.55 rear axel and 310/105R15 tires. My father has an Explorer 1998, 4.0L Auto tranny, I don't know about rear axel used and tires are 235/75R15 No one has towing package but both has extra oil cooler.
We plan town a 14' fishing boat trailer wich is under 650 pounds.
This Hennessey Takes the Expedition Tremor's Off-Roading Capability to the Next Level
Slideshow: The VelociRaptor Expedition gains a lift, upgraded suspension, Brembo brakes, and trail-ready equipment while retaining the stock 440-horsepower EcoBoost V6.