Smaller petrol Tow Car recommendations

My recommendation is, i wouldn't. Unless your 4x4 is knackered stick with it. A new supposedly more economical car will cost you an arm and two legs in depreciation thus wiping out any theoretical savings on running costs. Otherwise you need to narrow down what floats your boat in a car and give an idea of your spend budget. German solidity, Italian or french flair, Japanese boredom (Subaru and Mazda apart). If changing i really would go for automatic and think about going rwd.

 I towed a 1150KG MPTLM caravan with a 1.6 petrol Nissan Bluebird Hatchback of about the same weight without driver and 80 horsepower. Had the car from 3 years old until it was written off in an accident at over 14 years old and towed with it for 10 seasons. It had over 100,000 miles on it by then. The reason that it was so low in mileage was that after my wife's death I used it summer only and used an old 2 litre Bluebird estate in winter for 5 years. 

I know that cars are far more advanced as this was a 1999 car and no turbo but I personally would not want to tow a 1,350KG MPTLM van with a 1.6 car. I would rather choose a 1.8 or, preferably,  2 litre with a BHP of closer to 110. I wonder if there is that much choice with petrol engines above 1.6cc but then I have not looked.

I'll stick with my 14 year old X-Trail for towing and 19 year old Yaris for runaround. 

Inevitably with the ecological pressures as well as costs IMO modern cars are being built just to do the job required. Gone are the days where the engineering was over-egged with reserves, now they can't be and we now have the in depth design technology not to need these reserves, we can calculate just what is needed.

In consequence, the modern family car is just that, its not a "tractor" happy to lug its own weight again, plus way more air drag, of a caravan hung on a hook. Engine power and torque-wise these are not the real challenges its the overall ruggedness of everything that gets loaded, these bits are simply not designed for that duty.

This is not going to change for the better in the direction of our requirements, its definitely heading the opposite way, designing for the task and just that.

So, I would not be looking at a small modern domestic car, and definitely not a petrol one for a tug. Best by far pick a motor with towing in its design spec, one expected to tow a caravan or horse box, then it will be designed at least in part for that role.

Or, buy or keep hold of a yesterdays more rugged vehicle, IMO ideally a diesel for hauling. A vehicle marketed before the excesses  of over designing were minimised as a vital part of being competitive, and being environmentally allowed.