As far as performance, I could go either way, but I am basing this on the installation on my OEM 3" exhaust system. With a 3" inch exhaust I don't think the location of the exhaust brake plays that large of a role in performance because the additional air volume is much less than say, a 4" exhaust system. Just my opinion here.
I do like the in-line exhaust brake as it is quieter than my previous direct mount. I think this may because it is farther downstream than the direct mount, so the additional quantity of compressed air may muffle some of the harshness.
In my situation (3" exhaust system), the direct mount 4" exhaust brake would have been a much easier installation and no welding would have been required. The in-line exhaust brake (4" diameter) had to be adapted to the 3" exhaust system - definitely more work, however, in the end - well worth it.
Another thought that is in favor of the in-line exhaust brake is that the air cylinder is in a much better ambient temperature location - the seals will likely last longer - and, if they do fail - much easier to change out the cylinder.
- John
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