Now I'm a big fan of Camplite, and think it still has possibilities for you and your tow rig, if properly setup. The right WD hitch, of course good brake controller. If you are the primary occupant in the Xterra, then you may have the cargo capacity to handle the tongue weight safely with creative packaging.
So here's another idea, not as slick as the camplite, but pretty cool in their own way.
Riverside Retro 177SE twin- postEdit (and Hijack...)
I don't advocate towing at max limits or overloading, I just wonder if we've developed a knee-jerk reaction without looking into the details of possibilities every time we talk about towing with a certain vehicle and trailer. I tow with my Ford van, my daily is an '02 full size Montero, same ratings as OP. I'm setting up my Montero to tow my trailer as a backup since it as 4WD, 4.30 gears, and a 5-speed select shift Aisin transmission with all the HD cooling systems on the truck. In Australia, the Montero is badged as a Pajero, generally most caravan towing is done with small to mid size SUVS. Now I understand many are diesel as well, but my point is, they don't think twice about it, they just setup appropriately and hit the road (and off road too).
Good video on WD hitches from the Aussies:
WD hitches explained- "Goo-Day mate"Now this one is a diesel, which we can't get here, however they don't shy away from towing with the gas models either with the proper setup, so why are we so reluctant?
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