I have a 1989 k5 that has a 342 axle ratio and was wondering if going to a 373 would be better. Truck is all stock with tbi 350 700/r4 265 75 16 tires it is very sluggish of the line and on the interstate in overdrive shift to drive and I can cruise 85 no problem while towing rpm runs about 2000 in overdrive 3000 in drive it shifts in and out of overdrive at hwy speed going up hills not towing but it pulls high teens for milage on interstate in overdrive drop to drive and it sucks fuel. Also wanted to know what was standard equipment for gear ratios and what is special order. Why would their be such low gear ratio on a truck that only has what 150hp.
With a 700 I think I'd go right past 3.73 to 4.10's. Probably not going to find an 8.5" rear with 4.10's, but my opinion is that the difference between 3.42 and 3.73 is not that much, especially considering overdrive.
3.42 to 3.73 is about an 8% difference in ratio, 4.10 is about 17%. Worst case you don't let the engine scream and slow down a bit, which it seems most are loathe to do. If the trans is "hunting" between 3rd and OD all the time, you need to slow down (or speed up I suppose) to keep that from happening. The load on the truck is too great (aerodynamic drag, which is exponentially worse as you speed up) and that hunting for gears will eventually burn the trans up if it's not cooled very well. Drag is the enemy of these trucks, going from 60-65MPH is not going to require ~10% more power, it's going to need more, and it's going to need more fuel to do it.
Your present setup should run 1760RPM at 70MPH (in OD).
3.73 is 1919RPM.
4.10 is 2109RPM.
If you go to 3rd (assuming towing, decent grade, etc) 4.10 is 3014RPM, 3.73 is 2742, and 3.42 is 2500RPM.
IMO none of those with the 4.10's would be a problem. It's going to use more fuel, there is no way around that. But 2100 at 70MPH is not a bad RPM.
I don't tow much weight, but I can imagine the weight of the trailer, trailer drag, and terrain are going to be your big factors, and if you have a large/heavy trailer, and/or hills, 4.10's are going to provide much better power.
By the 80's GM had drastically reduced the options on the light duty (1/2 ton particularly) trucks, and had only two transmissions (manual and auto) and I believe the gear ratios were 3.42 and 3.73 for 1989. I just checked the brochure for 1989, and they don't specify axle ratio. 3.73 seems to be most common with the TH700.
I've never felt a properly running 1987-91 R/V series 350/3.73 truck was "sluggish" when unloaded, if the driver pushed the pedal to the floor and left it there. They aren't going to win a drag race against a Corvette, but they are infinitely more powerful than the previous 305/3.08 trucks. Just going to say that 85MPH is probably not a good idea for various reasons.