I know the yukon gets bashed on here as a tow vehicle but the price of used ones just makes it so damn tempting!!! Everyone that complains talks about the "soft" suspension being the #1 problem. Has anyone towed with a lifted yukon? Wondering if I get rid of all the factory suspension it will prove worthy. The stance would be a touch wider and I could get some tires actually rated for the towing. Boat is only a 29' single I/O...maybe 7K. Thoughts???

Trying to purchase a nice car so I'm downgrading on the truck a bit. A lot of miles will be around town too. I'm also considering a late '90s/early '00 1500or2500 rams.

The Yukon (and Tahoe) are station wagons based on 1/2 ton pickup trucks. They're made for moms and kids and maybe a ski boat or day cruiser. 7K is too much to tow. First off, you'll cook the grossly underpowered transmission. Then, if the marshmallow suspension doesn't put the whole thing in a ditch and you don't shear a u-joint, the rear end will likely grenade.

Other than that, they're great tow vehicles.

as far as soft suspension goes i have used timbrin blocks the work great never fail and no bags or lines to leak cust. love them and load range d or e tires

Points well taken, and I understand the yukon is based on the 1/2 ton truck. Would love to find a cheap 2500 yukon but there's always the premium when going up to a 2500 and the wheelbase is fine for towing but will probably be a bit of a biotch around town. A 2500 Yukon would be great, but none were made. Does the XL use a different tranny than the std yukon? The axles have to be different since the 2500 is 8 lug.

Are you looking at pre-2000 or 2000-'06?
The earlier ones still had leaf springs and rear drums, but they're not bad for local tows.
The later models have the rear axle located by trailing arms and a track bar, with coil springs; that's why they're a bit scarier to tow with. But I bet a Hotchkis setup of trailing arms and track bar (panhard rod), would go a long way. I wouldn't recommend a lift kit; while you may get a little stiffer setup, it can't help to have a higher CG.
Also, get an aftermarket trans cooler; that will prolong it's life a bunch.
The Tahoe/Yukon isn't the best platform if you'll be doing a lot of highway towing, or hilly terrain. But for staying local, it'll be fine.
Also, if you get a 4WD, get the 4.10 axle ratio and it'll feel like a stump puller as long as it has the 5.3L engine. Put an intake, shorty headers and reprog the PCM and I think you'd be ok.

I have an 02 Tahoe Z-71 w/5.3. It has the tow package 17" tires ect. Also Jet programmer,K&N filter kit,dual exhaust.
I pull a 30' PQ that weights around 7500lb + 1100lb trailler. It works fine around town,pretty good power. The biggest concern would be braking. The farthest I have been is around 160miles round trip. Wouldn't want to venture any farther!

I used my 2001 Tahoe to tow my 29' (about 7-7.5K) for 5 years. Once I found some good tires (Yokohama Geolander) it towed it with ease. The only bad speed was around 65 as the stock rear end ratio was to low and the engine was lugging a little. I also used a buddies with the air ride rear suspension and the optional higher rear end ratio, it towed with ease. My Tahoe which my wife has now, has 140k miles, tranny replaced at 127K.

Generally speaking, lifting any vehicle will make it less stable for towing.

Braking on the Tahoe and basically anything with Coil Rear Spring Suspension are NOT going to be favorable for towing. Been there.

I tow a 31' Scarab from the suburbs right thru the middle of Chicago with my 3/4 ton, 8.1L, XL with no problems. The gas mileage sucks, but my company picks up most of the cost anyway. Rides like a charm.

The XL is a 2500 series Suburban. The small one's used the 4L60 trans and the 3/4 ton used the 4L80. HD axles- floating hubs in the rear. There's a world of difference between the Tahoe and the XL/Suburban- other than sheet metal and interior they're pertty much completely different.