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Originally Posted by Rattlesnake Guy
Question for the experts. We have two Ford Expeditions with tow packages. Can someone explain what the overdrive on off function actually does? I know it is supposed to be off when towing and on when driving but does it do more than prevent me from going into the highest gear on the highway? If I am pulling the boat up the launch ramp at 1 mph, does it matter if the switch is on or off? 
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If I am pulling the boat up the launch ramp at 1 mph, does it matter if the switch is on or off?
No, but I would manually shift it into first gear, just in case of any wheel slippage.
Always use low ,or first gear when towing a heavy load up a ramp, or just to get it moving, depending on mud-sand that the trailer tires may be in.
For over the road...
When you tow, be it a utility, boat or travel trailer, with the added weight, never use overdrive as this will overheat and burn the transmission fluid and cause early transmission failure. Repair, ball park ( $2500.00 ).
Also, you need to make sure that the factory 'Tow Package' includes an external transmission cooler, the heavier duty the better.
I've done a lot of towing over the years with many different tow vehicles and combination trailers. I have installed auxiliary coolers and even temperature gauges to monitor transmission temps.
Many may or may not have read my blog out here. My Dad towed a 46' house trailer across this wonderfull Country of ours with a 1949 Buick RoadMaster. The rig weighed 7.5 tons. The dynaflow automatic transmission used 1/2 a pint of automatic transmission fluid after our 4,376 mile trek...
I hope this helps.
Terry