Fender dump pipe
Both the cars I've owned had that setup at one time or another. The car we have now has sheet metal riveted over the dumppipe exit hole on the plastic inner fenderwell. Infact just recently threw the dump pipe away when cleaning out the shed, thought I'd never use that archaic dp again, man I'd have given it to ya!. They had taken the stock elbow and modified it, ours was wrapped with header insulation wrap. Car spooled like a banshee on meth. Used to drive it on the street you couldn't hear yourself think. The only problem with them from what some of the Buick guys experienced and used to say is they burned up/cooked the turbo bearings. Buy a cheaper turbo flange/ or old elbow with puck modify it and make your own 4" dump-pipe.
They are crazy loud............. You are right in that the dump pipe came straight out off the elbow and out the hole in the fenderwell and sat right above front tire,when not in use you could unbolt the 3 bolts(like a 3bolt header flange) and block it off with the plate, I used a header gasket between the block off plate and header flange. Seen acouple of really nice setups(Roc87's GNX clone) where instead of coming out the fender they used the 3 or 3.5"(forgot which THDP he has) test pipe with cutout and utilized the electric motorized cutout so with the flick of a swiitch a immediate dump-pipe. If I remember the dump came out right behind the front tire but not obvious. Very trick and stealthy Roc did a nice job on it! What's nice about that system no jacking with bolting and unbolting the cover plate. And if you did happen to be using it on the street and the Police think your loud or someone is you flip the switch and your running back thru your mufflers within seconds and they know it couldn't be you!