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I installed a tow hitch in my 1984 245 this summer. Pulled it off a similar car at the salvage yard, so was able to see how it fit on.
You need to remove the muffler guard.
There are two long bolts, one on each side, that come down from the cargo bay and stick out under the car. On a stock 240, the bolts are fairly short and are barely visible under the car. You'll need replacements that are much longer. Remove the short ones and replace them with longer ones. They're hard to find, so hopefully some came with your tow bar. You can now hold the tow bar assembly up to the bottom of the car, sticking the two protruding bolt ends through corresponding holes in the tow bar assembly. Use washers and nuts to secure it.
With the muffler guard off, you'll see three other threaded holes on each side of the underside of the car. Six holes in all (3 on each side). These correspond with additional holes in the tow bar assembly. You'll finish securing the tow bar to the underside of the car by lining up the holes and then threading bolts into them.
It definitely helps to have an assistant for this job. You need someone to hold the tow bar assembly steady while you fasten it. It's very bulky and hard to hold by yourself.
I was lucky to find a factory OEM hitch at the salvage yard that had clearly come new with the car and was installed perfectly. Not only was it cheap, but I could see exactly how it was done and I could grab all the necessary hardware.
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