From what I understand, I can currently tow up to 5000lbs with the
It would be more practical to sell it and buy something capable of handling the load. Even if you get 500HP out of the engine, you still have a lot of other parts that need to handle the load.
Towing capacity is determined by a lot of things. Even if you add horsepower, you're still stuck with the same cooling system, transmission, gear ratio, suspension, etc. I wouldn't do what you're suggesting. It would probably be simpler to buy a well used pickup truck to pull the trailer.
I've pulled just under 5000# with my '01 (240hp). It wasn't pretty when going through the mountains on I-77. It was fine around town. Definitely better than my '99, but I would want something stronger for the long term. It would be cheaper for you to get something different rather than to try to add that much power to your '00.
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