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My dad has one, and if you have the 5 speed, they seem to pull fairly well. Obviously you won't be going up any hills at 85 mph, but you will still reach your destination in a timely manner. I would be more careful with the auto. The A4LD based trans can handle the loads, but requires more maintenance and you shouldn't use overdrive when going up hills.
Although I have been ridiculed, I pull a 14' enclosed haulmark trailer behind my 88 ranger. I have the 2.3 l 4 cylinder. It does great around town, but stinks on hills and highways. Milege is great though compared to my F150 and F250. (V-8's)
i have a 2000 2.5 4cyl 5 speed with a 4.10 ls 8.8 235-75-15 tires open exhaust tb spacer jet chip k&n intake and i tow my pop up camper that weighs 2000 lbs with elc brakes all over the nc mountains with no problems
Yeah, everyone has to have a seat belt or it's illegal not to menton dangerous. At best you will have belts for 3 in the front seat. I would not recomend 4 of any age, safty must allways be the first priority with your kids. Sounds like you need a supercab with the jump seats in the rear for children and they have seat belts. Proper gearing makes the difference when towing with a 4 cylinder, no less than a 3:73, 4:56's would be ideal. However 4:10's will give you the best of both worlds, great torque and still real good mpg.
I don't know about any truck, but you can get a ranger with a supercab and 4 cylinder engine, either automatic or manual tranny. Sounds like thats the direction you really need to go, it will also give the adults in the front more room so everyone has a comfortable safe ride and it will still tow the same. Kids get a kick out of those jump seats in the rear, plus thier facing each other so they can kick fight, play and whatever else youngsters do to entertain themselfs. It will also give you added room for groceries or whatever if the weather is bad, so you won't have to carry them in the bed.
Older Rangers can be found with great "hauling" running gear. Even with 4 cylinders - back in the day, one could special order just about anything one wanted in a truck. Oh I wish those days were here again, anyway, Ebay, craigslist, cars.com(?), etc, etc, maybe your only sources for older trucks.
IF you are going to get one, better make it soon. These trucks won't be around much longer.