The only difference from what I know is that version 3 has a vibration bracket and the finish of the pipes are ceramic. The pipes work fine but on my car I would experience random vibration from the pipes, I'm quite sensitive to the sound so I rather try to get rid of it. Even with version 3 the vibration is minimized it's not eliminated 100%, but again I'm sensitive to those things. Read up on the Motordyne ART pipes review for more info on version 2, performance wise it's outstanding. Hope this helps!
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