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Bring your car to a shop you trust and they'll tell you how worn your brakes are. Replace them at 2/32 or less. I consider the extra cost of ceramic brake pads, such as by Hawk or Posi-Quiet, worth the extra cost ($80, rather than the ultra-cheap $30 organic brake pads). Remember, this is what stops your car from crashing into other people; it's not worth skimping on. They'll last longer too. I wouldn't pay for more than one hour of labor to change both front discs and rear drums, which is maybe $60-80 depending on the shop you go to. So an honest shop will charge you maybe $200 total if that includes rotating your tires while they're at it. (They have to take the tires off to change the brakes anyway.)
If even new brakes feel soft to you, you can replace the soft rubber lines with braided stainless steel lines from Goodridge, which cost about $100 plus labor to install. Changing your brake lines requires changing the brake fluid.
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