Remember Westy, you'll get decent voltage drop between solenoid and winch if you're mounting it under the hood and from experience there are time when you need to wring every last bit of performance from that winch. You will need to upgrade the cables if you do this.
Seriously, mount it on the bar mate. I considered doing the whole under bonnet thing and just couldn't be arsed. I don't think there is a huge advantage in doing it that way.
But that's just my opinion
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