Problem with a hitch rack in this case is the question asker has a Tercel. Hitches mounted to small cars like this are the ones with the tongue permanently attached. Unlike hitches put on trucks and SUVs where the rack frame is attached to the frame of the truck. And then you have a separate tongue hitch part that fits into the 2" square pipe.
If you want to go for a hitch rack, it's worth going to a decent welding shop. They can either install or fabricate and install just about anything you want. Downside is the cost ($150-200 for the hitch). Upside is you may never have to buy a rack again, if you get a new hitch on your new car.
I've heard the 2" hitch is more stable than the 1-1/4". No personal experience, as I wanted a 2". And it pitches on bumpy roads anyhow unless it's really tight.