Budget and luxury are words that don’t often appear in the same sentence. But sometimes, you can actually get more than you pay for, as our guide to the best budget luxury cars for towing shows.

We all know the best tow cars for caravans will provide a reliable towing performance, offering stability and practicality as you safely get from A to B, but choosing the right towing option isn’t always the easiest prospect, with a wide variety of models on the market. Opting for one of the five in this guide will give you luxury without needing the spending power of a millionaire, whether it’s in terms of space, performance, style or kit.

Okay, we’ll add the caveat that none of these five cars is cheap as such – however, they all provide more than you’d expect. If you shop for a used tow car, the scales tip even more heavily in your favour.

Here, we’re sharing our favourite budget luxury options, featuring models from VW, Genesis, Volvo and more. Do take a look at our favourite caravan towing tips if you’re after some guidance to help you stay safe on the road.

The best budget luxury cars for towing:

The Volkswagen Multivan 2.0 TDI 150PS Life
The Volkswagen Multivan 2.0 TDI 150PS Life

Volkswagen Multivan 2.0 TDI 150PS Life

  • Price: £48,375
  • Kerbweight: 2144kg
  • 85% match: 1822kg
  • Towing limit: 2000kg

If space is the ultimate luxury, the Volkswagen Multivan is quite simply one of the most luxurious cars you can buy.

Rather unfairly standing in the shadow of the all-electric VW ID. Buzz, in most respects, the Multivan is actually the better vehicle.

Buyers have the choice of different interior layouts with six or seven seats. Either way, everyone has plenty of space. And we do mean everyone – there’s no cramped third row in this car.

The six-seater in particular gives all passengers acres of room to stretch out in.

It’s not just big, the Multivan is clever, too. The seats slide, as does the storage unit that moves up and down the cabin like an in-flight refreshment trolley.

That wouldn’t count for much if the VW didn’t tow well, but it’s more than capable of hauling a tourer, so long as it is a sensible car/caravan match.

Performance is strong, it remains stable at speed, and traction is very respectable for a front-wheel-drive car.

There aren’t huge numbers of used Multivans for sale, but if you do find one, prices start from around £44,000.

See our review of the Volkswagen Multivan 1.4 eHybrid 218PS Style DSG, a model that is ideal for four-season touring.

The Genesis Electrified GV70 AWD Dual Motor Sport
The Genesis Electrified GV70 AWD Dual Motor Sport

Genesis Electrified GV70 AWD Dual Motor Sport

  • Price: £65,105
  • Kerbweight: 2310kg
  • 85% match: Above max tow
  • Towing limit: 1800kg

Agreed, we are stretching the definition of budget to breaking point and possibly beyond.

But to our eyes, the GV70 looks much like the Bentley Bentayga, and that would cost upwards of £169,000. In other words, take the price of the GV70 and put a ‘1’ up front.

Here, we’ve plumped for the Electrified GV70 because this is the version we’re most familiar with, which we loved running on long-term test for Practical Caravan a few months ago.

There are obviously still some difficulties in using any electric car for towing long distances. Should that be too off-putting, the petrol GV70 is priced from £42,370.

The petrol model can’t match the hushed refinement of the Electrified GV70, though. Most electric cars are quiet because they lack the sound of thousands of small explosions every minute from under the bonnet, but the Genesis is on another level. Very few outside sounds find their way into the cabin, especially if you make full use of the car’s optional noise-cancelling stereo.

As a tow car, the GV70 is quick and stable, although we found it wouldn’t tow much more than 100 miles in winter, a consideration if you’re thinking of towing a caravan in winter. There are nearly new examples on sale for under £53,000.

See our review of the Genesis Electrified GV70 Sport.

The KGM Rexton K50
The KGM Rexton K50

KGM Rexton K50

  • Price: £46,250
  • Kerbweight: 2180kg
  • 85% match: 1853kg
  • Towing limit: 3500kg

On a purely ‘lb per £’ basis, few vehicles come close to the KGM Rexton. It’s a huge two-tonne tow car, packed with kit, all for a surprisingly affordable price.

The cheapest model in the range starts from £40,500, but we are after true luxury here, which means spending £46,250 for K50 spec, with its long list of toys and gadgets.

Off-road, the Rexton is a very capable 4×4. On the road, this is neither the most polished nor the most refined SUV for towing, but it’s by no means uncouth.

For towing duties, the diesel engine has the brawn to handle a big tourer. And even if you have no intention of getting the 20-inch alloys dirty, the option of selecting four-wheel drive makes for reassuringly secure towing, whatever the British weather might have in store.

Stability is good, rather than great, compared with other large SUVs, but it’s important to remember that this vehicle weighs in at over two tonnes.

This means that if the wind picks up and your caravan decides to start an argument, it’s going to be very brief and completely one-sided.

KGM is the new name for the Korean brand SsangYong, and the same car is available for a whole lot less wearing the SsangYong badge. We’ve seen low-mileage used models
for around £32,000.

The Volvo XC40 B4 Core
The Volvo XC40 B4 Core

Volvo XC40 B4 Core

  • Price: £39,351
  • Kerbweight: 1688kg
  • 85% match: 1435kg
  • Towing limit: 2000kg

Shrink the Volvo XC90 a little bit, and you get the XC60. Put that car through another hot wash and you end up with the XC40. Owners enjoy the same Scandinavian style and quality, but in a smaller and far more affordable package.

The plug-in hybrid version is no longer sold as a new car, which is a shame, because it’s the one we would recommend for towing. It’s certainly worth seeking out on the used market, with its high kerbweight, very favourable matching ratios and impressive economy.

Nowadays, new buyers must choose between mild hybrids and fully electric models.

The mild hybrids are better value, and with 197hp, the petrol engine in the B4 version is strong enough to cope well with towing a caravan.

Inside, the XC40 is very solidly made, and despite being one of Volvo’s smallest models, it’s still big enough to make a practical family car.

There’s enough room in the back for teenage children, and although a bit more boot space would be welcome, it’s by no means small, with a reasonable capacity of 443 litres.

Stick with the mild hybrid if you prefer, but there’s a good choice of used plug-in hybrid XC40s. Not sure about the type of car to go for? Check out what we had to say about the debate between hybrid vs plug-in hybrid vs electric. Prices start from around £30,000, a handsome saving over a brand-new car if you opt for a used Volvo XC40.

The Dacia Jogger Extreme
The Dacia Jogger Extreme

Dacia Jogger Extreme

  • Price: £20,595
  • Kerbweight: 1336kg*
  • 85% match: 1136kg
  • Towing limit: 1200kg

Dacia doesn’t feature in many luxury car lists, but these days, the top-spec models are very well equipped indeed.

Although the Duster SUV is the more obvious tow car, the Jogger is the best vehicle that Dacia has ever made. Choose the top-spec Extreme, and it comes with a list of toys that wouldn’t be out of place in a vehicle costing you more than twice as much.

Owners of an Extreme enjoy sat nav, smartphone mirroring, climate control, keyless entry, all-round parking sensors, a rear-view camera and more.

The Jogger isn’t just packed with kit at a very keen price. It’s a really good car, full stop. It drives well, providing a very comfortable ride and a steady but acceptable turn of pace from the 110hp turbocharged petrol. The hybrid model is livelier, but the towing limit is rather restrictive, at 750kg.

Inside, the Jogger has room for seven people. If the third row isn’t needed for passengers, the luggage space is generous.

The only black mark is the car’s poor performance in Euro NCAP safety tests – it scored one star when tested in 2021.

The Jogger is a low-cost new buy, and we’ve seen excellent nearly new examples on sale for around £19,000.

Still not sure about the right car? Then check out our guide to how to choose the perfect tow car to help you identify the model for you.

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