I flush the brake fluid on my motorcycle every other year. Which means completely removing all the old fluid, not just taking a little off at the calipers.
DOT 4 fluid absorbs water. Water is bad for the system. The difference in appearance between the old fluid and the new stuff is like old oil and new oil. Over time the old fluid can destroy system parts.
DOT 5 fluid is silicone based, and will not absorb water, therefore doesn"t need to be replaced. I have heard, however, that water can "pool" at the bottom of the system, and should be drained if it accumulates. Also, DOT 5 is not compatible with DOT 4 systems.
That said, you are totally correct about the hydraulics and liquid compression. New fluid will NOT make the vehicle stop any faster.
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Today's Featured Article - Product Review: Black Tire Paint - by Staff. I have been fortunate in that two of my tractors have had rear tires that were in great shape when I bought the tractor. My model "H" even had the old style fronts with plenty of tread. My "L" fronts were mismatched Sears Guardsman snow tires, which I promptly tossed. Well, although these tires were in good shape as far as tread was concerned, they looked real sad. All were flat, but new tubes fixed that. In addition to years and years of scuffing and fading, they had paint splattered on
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