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I've gone both routes and no longer have a small utility trailer because I settled on the truck as better option for me. I've towed overloaded too many times and now would rather have a vehicle that's oversized for a safety factor.
A while back when I owned my Neon I towed a few things with a 1750lb Harbor Freight trailer, the heaviest load about 800lb total (motorcycle). It did fine and still got decent fuel economy. The problem was it was too light duty for my needs.
Today I have a F250 and 13ft car trailer which I've also outgrown and need to move to a 20ft. The truck is only driven a couple thousand miles a year and it's old enough to have stopped depreciating.
One downside for owning a utility trailer is you need a place to put it and that might not be possible if one lives in an apartment as many people do.
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