KODIAK
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The "dry application method" that you used works well, especially for people who have hard water and would need to really rush to get the truck done with the "wet application method" before the water left on the surface dries and causes water spots.
The dry method is also good for doing touch-ups, like on the front end before a trip to keep the bugs from sticking.
So, for your question, the towel needs to be wet since the H2O Guard & Gloss is a water-activated sealant. Without water, the chemicals are not going to react and bond to the paint, to give you lasting protection. To begin with, the towel should be damp, wrung out, and not dripping.
As you apply sealant to the truck by spraying onto the towel, the HGG can build-up on the towel, preventing water from getting to the fresh product as you apply it. For this reason, you should do two things as you apply.
First, reduce the amount of product that you spray on the towel as you get more of the truck covered. About four sprays onto the towel to start, then after applying to a few panels, reduce to just two sprays onto the towel for each panel.
Second, rinse the towel out in clean water after you apply to a third of the truck. This gives a fresher towel surface with adequate water to react with the product. Rinse again at two-thirds done.
Always apply from top down, to avoid picking up any dirt hiding out on the lower areas of the truck. You can break it up and apply to the top third first (windows, roof, hood), then the middle third (doors and fenders down to the top of the rockers, along with the tailgate and headlights), then finish on the bottom third (rockers, lower fenders, and bumpers). For the "dry application method" rinse the towel after the top third, and again after the middle third.
Also, the HGG works good on the running boards, but I use a different towel then the plush ones that I use on the paint, since the running boards always seem to have some dirt hiding out. A utility towel or an older plush towel is good for this.
-Dan
I'll just add...if it's warm/sunny/just driven, you might have to go almost panel by panel. You won't notice it as much on a white truck, but on blue flame it can dry and become hard to remove with the dry method. A shot of detail spray can help, but it's easier to just wipe it off almost immediately sometimes. I have super hard water, and do a sheeting rinse, so there's almost not enough water to do the wet method anyway. I dry, wet the panel with distilled water, and then apply....or just "dry" method. I really like it, because I go right over the decals and feel like it helps with protection more than detail spray or even VRT on them.