From the photo, it looks alot like my RC40. To the left of the tailpipe is a rod sticking out of the muffler toward the left side of the car. This is a hanger bracket intended to take one of those rubber gubbins that hooks onto a similar rod under the subframe, holding the muffler up in position. Unfortunately most Mini subframes don't have that bracket. These older subframes had a rubber insulator bolted to it onto which a strap hanger went down to the tailpipe.

In my photo you can see the unused muffler hanger and the stainless steel strap around my car's tailpipe. I used SS because my exhaust is stainless - I didn't want to have to replace it and incur the hefty shipping cost to Canada from the UK. It also has the "fancy-dancy" tapered tailpipe!

It "looks" like an RC40 ... I would suggest your problem is that it's not mounted properly.

If it is anRC40, then the rear box will sit up inside the rear subframe allowing it to be lifted upwards (maybe by as much as 2 inches). Depending on your capabilities, or the availability of a suitable local shop, someone needs to adjust (probably shorten) the pipework going into the rear muffler so that it can be moved forward and clear the rear crossmember of the subframe.

I can't see it in your photo but the rear valance should have a small cutout that allows clearance for the exhaust outlet to be moved upwards.

Cheers, Ian

Glad it's that simple, thanks! 

RC40 is marked on the muffler

Hello all - I just purchased a 1999 Mini 40th Anniversary LE. It doesn't have any documentation of the work done over the years - but I noticed it looks like it has aftermarket Hi-Lo struts and gas dampers in the front, and some kind of aftermarket exhaust (that was hanging down awkwardly). The mechanic also said the air filter was "washable". It made me wonder if the exhaust was replaced with RC40 or similar and together with maybe a high-flow air filter makes me wonder if they had put in a stage 1 kit or something along those lines for performance upgrade. What can I look for to help me figure out what I'm looking at?

Thanks!