Toyodiy.com for the part numbers.

With the brake handle at max clicks, it doesn’t prevent the rear wheel brake shoes to engage?

Could be e brake cables, brake shoes, or a combo of both.

Inspect the shoes by removing the rear rotors. The xrs had rotor over drum design. The drums are used for the e brake. The cables for the e brake needs to be adjusted from time to time or they’re frayed and need replacements.

 

Underneath the center console is a bolt on the handbrake cable that you can tighten to adjust the cable. After a while the cable can stretch, and need adjustment.

 

A lot of people don’t adjust them when installing the rotors.

You have to remove the rubber gasket on the rotor(if you still have it) and turn the rotor so that the hole in the rotor is in the 6’oclock position.

Look thru the hole and you will see a star adjuster, like teeth. Use a flat head and move the teeth upwards. That will tighten the drum/e-brake.

This process involves doing both sides. Once you get the drums tight enough, you should be able to turn the rotor with a little resistance. When done, do not stop there. Go in the car and pull the hand brake up. Check that the rear rotors are locking up. Good? Good.

Now for the fine tune adjustment, when you pull the handle it should take only 3-5 “clicks” to get the e-brake to lock up the rear rotors. This is a good measure of your work before reinstalling the wheels. I have mines adjusted to 4-5 clicks. It should be significantly harder to get 6 and 7 clicks. If you can, then it’s a bit too loose.

End note: it is possible to tighten one side more than the other. Trial and error will help you ensure this is not the case. You have to feel the amount of drag on each rotor to be similar. If you don’t have emotion, pull the hand brake up 2 clicks and push the rotor. If one turns more easier, tighten it to match the other.


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Had the same issue on my 2005 XRS. Tightened the cable and issue solved.

 

I'm going through this now with my 07 s. Did a brake job all the way around, rear shoes/ drums were crusty but brand new, never adjusted when replaced (I used my new parts and saved the old unused drums and shoes). After adjusting rear drums where i like them I still had no ebrake so I pulled my dash apart (put in my $200 boss android auto headunit ran backup camera wire). Turns out my cable is maxed out on adjustment so time to replace.

To elaborate on the adjustment a little more (after rear brakes are adjusted properly)
1) un thread shift know, place to side
2) lift up on shifter boot bezel, place to side
3) 2 10 mm bolts at bottem of armrest console storage need to be removed
3) 2 Phillips screws under center stack console storage need to be removed (I shouldn't have to say this but just incase. NO POWER TOOLS!
4) pull ebrake handle up and pull full center console up and out (preferably on grass next to car completely out of the way.) Be aware your 12 volt access point needs to be disconnected, it simply pulls out
5) release ebrake
6)with 2 10mm box wrenches (preferably at least 1 shorty) break loose the jamb nut on ebrake cable, and thread nut up a bunch of threads.
7)tighten down lower nut (a little at a time, checking handbrake tension as you go)
8)leave everything off thread knob on and test ebrake, adjust as needed.
9) put it all back together (don't try and kill the jamb nut )

Good luck
Ohh tools needs are
10mm socket (1/4" drive preferably)
2 10mm box wrenches (ideally shorties)
And Phillips screwdriver (NOT AN IMPACT GUN, OR DRILL)

 

I've always adjusted the parking brake star wheel so I could JUST get the rotor back on. Then test for engagement at the 3 - 5 click criteria.

If too loose, a couple yanks on the PB handle will center the shoes and allow you to tighten the star wheel a notch or two more.

BTW if you are not familiar with the workings of drum brakes, don't forget to apply a thin coating of grease between the rear side of the shoes and the spots on the backing plate where they contact. (Smear grease on both sides of shirt cardboard, and insert, that is all that it takes.) That will assure proper release.

Here's a vid for those who need to see