They are good trucks. I have a K3500 5.7 CCLB SRW with 4.10s. I haven't towed with it, but have hauled a lot of heavy loads to the payload capacity. Does fine. The 7.4 would obviously do better.
Here's the towing capacity for 7.4 K2500 from my owner's manual to give you some idea.
My biggest disappointment on these generation trucks are the door hinges. They stink! Other issues are minor.
Also, I think 12 mpg is more realistic.
Is the one you are looking at a 8' or 6.5' bed? Either one will HUGE compared to the 1500 CC 5.5' mostly everyone is driving nowadays. The long bed is not easy to maneuver in parking garages, but would have the edge for towing.
That truck should have hydroboost brakes and the valve booster seem to all seep some P.S. fluid. Easy fix. Also, the 7.4 gave you a 14 bolt full-floater rear end.
Is this going to be a daily driver?
As far as newer truck? We'll, that's a tricky question. It all depends on condition and maintenance. There are way too many late model trucks beat to hell with no maintenance whatsoever.
Going to the next generation trucks, the frames are a bit stronger (HD models,) engines offer a bit more power and towing improved accordingly. Transmission and axles are the same for the most part.
Have you looked at the 2500 suburbans? They may fit you bill if you need more seats. I own 2 of them and I'm really liking them. Both of mine have the 6.0 with 4.10s.
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