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On my '89 F150 5.0 AOD 4X4 the manual says something about with %50 or less load I can shift into OD at 35 MPH or something. With %50 or more I shouldn't use it.
Question I have is if I have no load can I use it all the time? Would that stress it out? My dad keeps his on all the time but its on a '93 F250 2WD truck with a I6.
The 50% load is for towing loads. Anything less and you should basically drive your truck in OD all the time--it's made to do it. Otherwise, you're just wasting gas and running your engine at a higher rpm than is necessary.
The manuals usually say to put it in OD for daily driving. The trans is smarter than you when deciding when to shift. If you're not towing then the only time you would take it out of OD is when your climbing a mountain at a speed that makes the trans shift in and out of OD too much. I live in Colorado and when I do a road trip that takes me over a couple mountain passes this will happen. When the hill is steep enough that my truck can't keep up the speed in OD and has to keep downshifting I'll then put it in D and leave it there until I get over the pass. That way I'm not burning up the trans clutches shifting all the time.
You can do it when climbing hills or with a load, just not if the trans is always shifting back and forth trying to keep up your speed. It's the back and forth shifting that's bad for the trans.
The AOD has a 1 1/2" wide band that holds the trans in overdrive. If you tow in overdrive, that band has to resist a lot more slippage. The stock band was not set up to resist the stress of towing in OD. AOD's can be built to tow in OD, but it requires a stronger servo and a wider band to withstand the associated stresses. With a stock unit or a stock rebuild, towing in OD will shorten the life of your transmission.