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I would recommend against this change, but you could probably get away with it if necessary. The load capacity is less, so be sure you aren't overloading them, and they will probably wear faster and handle worse. Also, the rolling diameter is less, so your speedo/odometer will read differently, and this might affect shift points, etc. Lastly, IMHO, it will look funny; these trucks usually look better with larger tires.
Thanks 4 the info..I'm new at this truck stuff.. I agree bigger is better, but with that comes more $.LOL Could I adjust the speedomeer, if I decide to try this size of tire? What is the biggest 16in tire available?
I wouldnt worry alot about switching sizes, tons of people do it! I was going to say also, instead of getting a 245/70r16, go for a 245/75r16. Much more common tire. I think you did the right thing by getting 265's though, they should look great!
FYI: 2001 F150 4x2 XLT Sport. My snow tires are 265/75R16. Stock wheels/tires are 275/60R17. I believe similar 4x4's came with 265/70R17's ('70' Not '75'). The snow tires are noticeably larger in diameter, and definitely affect driving characteristics; less acceleration, and dry cornering ability; but better slippery condition traction for winter.
PS: Check out the tirerack website to see the comparative revolutions per mile for various sizes. This will indicate the change in effective final gear ratio for your tires.