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For us, dolly towing was the best answer. Lower up front cost for one thing. Then we have two front wheel drive vehicles both with over 100,000 miles. Both in good shape, no plans to trade, but rather pointless to invest thousands more $$ in them even if they were able to be towed 4down.
I guess that if I were in a position of needing to hook up and drop the toad frequently, say two or three times a week or so, I might look differently at towing 4down.
As for storing the dolly when camping, we usually slide the front end under the MH and just leave the wheels sticking out. Has never (yet) been a problem.
Chuck Peck in CasaLoca
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