[Ben]

W.r.t to #3 I recommend buying some rust converter (google ‘rust converter’) and applying it to both the front AND back of the affected area and all along the wheel well lip. What this will do is convert the exiting rust into a more solid compound and also hopefully seal the area off from moisture getting in.

What might be happening is that the moisture is collecting where the panels join at the wheel arch lip. Water can get in there, then it rusts, then the wheel arch gets deformed because rust takes up more volume than steel, then more water gets in due to the deformation. So unless you seal that up it may continue to rust and get worse.

[Author]

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