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You don't want to make it too ight - or there is a chance that the parking brake will drag on you. If you ever look at the rear drums - they are some tiny brake shoes there. You won't get too much holding power there. Like Flashmn mentioned - they are auto adjusting. They will adjust every time you use the brakes, helps to backup quickly and stop to set them. Using the parking brake often will also help them adjust. On my 2002 - the parking brake holds as well as it did when new. Changed the rear shoes not too long ago at 100K miles as a precaution, easily had another 50K - 100K or so of life left on them. Action of the parking brake is exactly the same as before.
Anyway, to adjust (quickway) - pull the rear console off - there are some bolts inside the armrest compartment, and two scres on the sides by the shifter. Once you pull it off, the parking brake lever will be exposed and you'll see jam nuts on the cable. Loosen the lock nut, adjust the tension on the adjusting nut, tighten the lock nut back down. Don't worry, you'll understand it once you see it.
The right way to do it - take the rear drums off and take out any slack in the rear drums. Have to play around with it - shoes should just barely drag on the drums. Then take the slack out on the parking brake lever. Adjust it so there are between 4-7 clicks until it holds the car - a little tighter if you want more responsive action, but not too much more or it will drag on you (shoot for a couple of clicks).
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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