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Hi
I'm in the process of buying a aluminum boat around the 5m mark and will also be upgrading my vehicle to something capable of towing it. Budget wise I've got around $12k. The vehicle will be used for both boat ramp and beach launches. Preferably looking for a 2004 model and later as the vehicle will also be used for city driving from time to time. I was checking out the Subaru Outback as a potential candidate but would like to hear other possibilities.

Any advice much appreciated.

Thanks

Depending on the weight of the boat, the Outback should be OK to tow it. I believe most boats of this size may weigh around 1,200kg (but you need to check the specific one you're looking at). While having adequate power to tow is important, from a legal and safety perspective, it's the stopping that's most critical.
An Outback of this era is rated at 1,500kg for a braked trailer (750kg unbraked), so as long as the trailer is braked, it should be safe. The law states that the vehicle must be able to stop within 7 metres from 30km/h, so this is the real test.
Having said that, diesel SUV's are usually the preference for towing as they have plenty of torque and are usually heavy enough to handle the braking requirement, although there wouldn't be too many that would meet the age and budget criteria you've specified.