Originally Posted by fazman
There was a thread by OneBadMofo, who figured out the cause of the squeaky rear brakes. The issue is over time the brakes rust and you really need to take everything apart and sand down the rust + add some grease to the affected area so it resists rusting in the future. Some people cheat and bend that part to get more clearance to avoid the squeak but the right way is to clean off the rust. The rust takes up space which is already a tight squeeze anyways.
I think you can get a set of BMW rear pad's for about $100 and the set of rear rotors are about $150-ish? The rest is all labor cost, if they don't clean off that rust then you will still squeak.
Alright thanks for the help. I would assume if I get new rotors and pads, that would take care of the rust issue too? Until they rust again that is..