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The 2002 Toyota Camry range of configurations is currently priced from $500.
Our most recent review of the 2002 Toyota Camry resulted in a score of 6 out of 10 for that particular example.
You can read the full review here.
The 2002 Toyota Camry carries a braked towing capacity of up to 1200 Kg, but check to ensure this applies to the configuration you're considering.
With a limited budget like yours I would suggest to go for a car with a good reliability record. While the Mercedes-Benz is a good car you are likely to be facing an expensive repair if anything should go wrong. Consider a Mitsubishi 380 or a Toyota Camry of around 2000-2003.
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First you need to know the total weight of the trailer when it's loaded with everything you want to take with you when you go camping. It could easily sneak up to close to the Corolla's limit of 950 kg. You have to think of safety when towing, and it doesn't matter that you will only tow short distances or do it twice per year. I would tend to go for the Camry, it has a higher towing rating, it is a heavier vehicle and therefore more stable, and I think safer for your needs.
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Your experience of increased performance and increased fuel consumption on E10 is in line with what we've been told would happen, but the failure of a rubber component in the fuel tank is cause for concern. So too is the starting difficulty you had. Both of your cars are claimed to be E10 compatible, but like you I'm not convinced that E10 won't cause some issues on some cars.
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The Toyota Camry 2002 prices range from $2,750 for the basic trim level Sedan CSi to $6,050 for the top of the range Sedan Sportivo.