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You're right, the exhaust is horrible and that's probably the reason the quarter is rusted out at that spot so bad. Looks like it may be rusted behind the wheel also.

My car is a Canadian built car, no Swinger 340 Special though...VIN# starts with LL23B1R. Originally a /6 with 3 speed on column. I know the guy who tried to clone it into a 340 Swinger, installed a very nice built 340 but didn't go a very good job of finishing the project. Now I'm just trying...

Amazing to find one in that shape...it runs and drives so I would clean it up and take it for a spin. Congratulations on that find.