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Jeep Grand Cherokee 2004: Is it suitable for towing?

I'M IN the market for a late-model, mid-sized 4WD in the low $20,000s, which I want to use for touring, perhaps even around Australia towing a 5m caravan. After comparing several possibilities, I keep coming up with the Jeep Grand Cherokee. How does it rate for reliability, build quality and all-round suitability for my use?

BUILD quality is quite good. Unlike the earlier Cherokee, which came from America and was poorly screwed together, the Grand Cherokee is built in Austria. It has good performance, but it's quite thirsty. It handles OK for a 4WD, but its brakes are only adequate and tyre wear is high. There are also reports of diff problems and electrical gremlins in systems, including the remote central locking.

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