That doesn't sound like a very neat installation. I believe they make special hitches for Jetta's?
In any case, I have a 1976 Rabbit that I installed a hitch on. These cars have big steel bumpers that stick out the back, so it was a simple matter to just bolt a hitch receiver to the underside of the bumper. I used a receiver so I could take the hitch ball off when it wasn't in use. This keeps me from banging my leg into it, or getting grease on me (or someone else) if they accidently brush up against it.
Anyway, I have been towing a 4'x8' utility trailer for years with my car. I haul bark dust, building materials, garbage to the dump, furniture, etc. It's cheaper than buying another vehicle for hauling, and I still get to drive my Rabbit around when I'm not pulling the trailer.
Our local dump charges by weight, and I've had about 800 pounds in there at times (not counting the trailer weight itself). That's about the most I like to carry in a single load.
I did install a larger exhaust system, a larger radiator, and a lower temperature radiator fan switch. Otherwise, it's just a basic 1.7l Rabbit engine.
I've got over 360,000 miles on my Rabbit and it's still going strong (though I doubt there is an original part left on the car! :)
Anthony