Well, if your towing a car you will need to install an electric brake system (with breakaway). Legally your only allowed to tow 750kg max (gross, not load) before elec braking is needed.
www.rta.nsw.gov.au/registration/downloads/vsi/vsi22.pdf
Just from my own expirience, I much perfer a vehicle thats better built for the job, e.g. Cruiser/Patrol/small truck. The old navara we used to have would sway with a decent load on the trailer, we were out in the sticks - which is less of a danger to the motoring public, but a 15 year old flogged sports car I would feel uncomfortable in - just like those old EB/EF Falcons towing caravans that make the mudflaps scrape.
Cheers
Sumo