Bob -
In my memory, the RAV-4 has not been specifically discussed on this board. However, like other sub-compact SUVs, it is not a very good choice, for reasons that have been hashed over endlessly on this board. (Use the Advanced Search tool on the term "wheelbase", and again for the term "dry weight", and again for the term "3500" for lots of interesting reading.)
The 2007 RAV-4 has a wheelbase of 104" - awfully, scarily, short for maintaining control in a hard-braking situation, especially on a downhill curve.
The 2007 RAV-4 has a "unitized body" (aka unibody) contruction, rather than body-on-frame. A unibody is severely stressed by the torque imposed on it by a WDH, which has actually been known to bend the body. THAT is why the mfr rather coyly says "we do not recommend a WDH". On the other hand, if you do not use WDH, you will severely overload the rear suspension - what is the spec for tongue weight? A road-ready 2720SL will probably go 500 pounds or better. The excess weight on the hitch will also severely underweight the front suspension - think REALLY squirrelly handling.
Once loaded for the road, a 2720SL with "standard" options will weigh very close to 3500 pounds. In other words, you are thinking of starting out with zero margin on an optimistic (at best) rating. Is that wise?
Next, check out your Rav-4's GCWR (which I don't find on the web site). It is probably in your owner's manual, though. You may find that with the TM back there taking up the entire tow rating, you have no allowance left for Rav-4 factory options, passengers, luggage or cargo, and maybe even gasoline. In fact, on the Toyota web site, there is a craftily-hidden note under tow rating which says "The maximum you can tow depends on the total weight of any cargo, occupants and available equipment."
I realize you have a 2006, and I quoted 2007 figures at you - but you can do the extrapolation.
Finally, you didn't mention where you plan to tow. Flatlands of the midwest and gulf coast - maybe. Steep grades - awfully marginal. High altitude - not a chance (in my opinion).
Sorry to be a wet blanket. Other opinions always welcome, of course.
Bill
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