Hi Mark,
Just so I am clear the noise that you hear when backing up now is a loud squeal or squeaking?
The leading cause of brake squealing or squeaking on new brakes is when brake dust get caught between the pad and rotor. This will heat up and cause the noise. The other major one is called glazing. This is when the pads and rotors get to hot too quick and they get glazed.
The business should be able to either replace them and make sure they don't use dirty hands when installing the new pads. Or they could just scuff the pad and chamfer on the leading and trailing edges of the pad. Just make sure they clean the rotors as well which ever they do.
As for the flushing of the brake fluid, you are probably correct. They are looking to recoup some of the money. However, don't feel to bad because they return the parts to the part supplier who warranties them for the facility. They may not get paid the labor back but that is a small cost to keep your business. It is not a bad idea to keep your brake fluid fresh because it does absorb moisture and when it does, this moisture will compress at a different rate then the brake fluid. This will affect your braking performance. However, the major concerns with brake fluid are leaks. As long as it is not leaking then you can judge whether to change the fluid or not based on how the pedal feels.
On a vehicle that is almost 20 years old, if it has never had a brake system bleeding then I wouldn't shy away from it. However, this will NOT cause the noise that you are experiencing so if they try to tell you that then they are just wrong.
https://www.2carpros.com/articles/how-to-bleed-or-flush-a-car-brake-system
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Sunday, May 5th, 2019 AT 6:26 PM