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If it is 400 series SS, it will be magnetic. Only 300 and some 200 series are non-magnetic. Most OEM exhaust systems are 400 series and they rust over time. The rust is no big issue as it would take years and years before it became unstable. I have seen 30 year old car exhausts in salty Ohio look fine and just the steel flanges rot off.
You will be fine using it. Not paint needed inside or outside. Nothing will rust and flake off like you see in steel.
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