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When I was running NHRA Stock & Super Stock in the 80's you were required to run an air filter and we tested everything and K&N's always flowed better than anything else, paper or other brands.
Since then I've always run K&Ns on my cars and never had a problem, and like the other posters, I don't think cleaning them is that big of a deal.
Old saying,"Race with a K&N and use paper for daily driving."
I put one in my LT1 a few years ago and I had to remove my intake to stop a leak. When I took the TB off, it was filthy. When I ran the paper, it stayed clean. I do wish the secret of cleaning the K&N would be revealed.
I've always just followed the instructions to clean them and everything from brand new cars to sportbikes to sprint car engines have never had any issues with them.
Yes, mine came with a K&N and I ditched it and went with paper and I also cut my lid. Not one problem since I did this.
When I switch back from the K&N to paper, do I remove the foam gasket? Mine had the K&N in it when I bought it, so I didn't know if the foam was stock or not.
There is a lot of opinion being mixed with fact in here. K&N when maintained properly will out flow every paper filter known to man. It will gain you hp IF your car is being restricted by the intake. For higher hp cars the K&N will free up much more hp than advertised. In those cases the paper filter becomes a huge restriction.
For example stock LT1 and L98 motors gain almost nothing. Our motors are not underrated and limited by the intake. Take an LS7 for example that has great potential, slap on a K&N or killer bee or other washable gauze filter and you see huge gains.
Mention paper filters to any F-1 team and they'll probably slap you across the face
The downside of course is more dirt being let into the engine. If you have a very mild motor and winning a street race isnt life or death a paper filter may be for you. 5 hp vs shorter engine life isn't worth it.
On the other hand those with higher hp motors looking for every last bit of hp the re-useable filter is the way to go.