I normally tow my 1992 Lunar Clubman 500-5 LE (1150kg loaded) with my LWB 1992 Isuzu trooper 3.1td auto. But it's rubbish on fuel and slow.
I've also got a 2002 Volvo V70 T5 auto (250bhp) and a 2003 Fiat Multipla JTD manual (modified to 140bhp).
I'm going away in a few weeks. Should I stick with the monster Isuzu? Or go for a change and use one of the other 2 cars? They all have their pro's and con's.
I can't speak from much experience, in that I have only towed for a total of around 12 miles, but we have a V70 like yours (albeit a diesel one) and it seemed to tow our Sprite Continental (1000kg laden) nicely enough.
I too would go for the Fiat, I would imagine that the caravan is within the cars max tow limit, fuel is not too cheap nowadays and adds to the cost of your holiday.
I doubt there is much between the Fiat or the Volvo on fuel when towing as you wouldn't be needing the throttle as much with the Volvo to hold your speed.
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Topic: What should I tow with?
