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I have a custom exhaust that dumps right before the axle. More noise enters the cab so it can be a little loud. From what I understand the only issue with fumes is when they are allowed to pool under the vehicle due to built up snow around the sides of the vehicle and its sitting idling. Never had an issue or noticed fumes myself. Yes it heats up the axle tubes more.

All that said, I would recommend a high tuck tailpipe that exits beside the rear frame rail.