For wiring, this should work :
[ame="http://www.amazon.com/Hopkins-46155-Taillight-Converter-Universal/dp/B0002Q8036/ref=sr_1_1?s=automotive&ie=UTF8&qid=1421837465&veh icle=1989-42-347-334-----3363-242-8---14-4-0&sr=1-1&ymm=1989%3Ajeep%3Acherokee&keywords=towing+wirin g+kit"]Amazon.com: Hopkins 46155 Taillight Converter Universal Kit: Automotive@@AMEPARAM@@http://ecx.images-amazon.com/images/I/41uUYi9bhML.@@AMEPARAM@@41uUYi9bhML[/ame]

I didn't see a simple "T-Connector " Kit, like there is for the newer XJ.

New Class III hitches start at about 80 and go to over 120, depending on what you want.