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I've towed with both trailers and dollies. The dolly is much lighter and as long as you can put free wheels on the ground they are fine. They work best for front wheel drive cars. Rear wheel drive cars are OK but you have to put them on backwards and I've never cared for that. All wheel drive cars are out.
The trailers are a lot heavier, but you can put just about anything on them as long as it fits. U-Haul trailers also have brakes that the dollies don't.
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