98 Tacoma 2.4L/Upgrading Tow Capacity

Hello Everyone:

As most of you may already know, the towing capacity of a two wheel drive, 1998 Tacoma, 2.4L is somewhere around 3500lbs. My goal is to upgrade the towing capacity to a class 3.

Now realistically, I'm aware that a 2.4L with a manual 5-speed has a limited amount of power; so with that said, I'm only looking to move around small hatch back vehicles from point A to B.
What would I need in terms of upgrading the axel & differential?

 

Just how do you plan to Tow these vehicles ? Flat Tow or Tow Dolly in both cases you can not back up.

A trailer large enough is really going to limit your payload.

It comes down to how far point A to Point B is a few miles or a few thousand miles.

Then just what type of driving all city and flat or constant hills or even mountains

Then the Truck is the complete Truck Brakes !! Suspension !! Stopping and Handling are more important then Horse Power .

Sure you could swap in a axle with Dual Wheels and a Lower Gear Ratio Then upgrade the brakes and Suspension till you invested that money you get buy a full size truck.

I had no problem Towing Toyota 4x4 vehicles a few hundred miles with a Tow dolly and my 22Re engine and 5 speed of course those were very long and slow days 16 hours to do a 300 mile round trip.