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Clay bars are great! Really spruced up my car's finish. See my photo gallery for a few pics.
do you cut away the bar as you use it?
No, as the surface of the bar gets dirty, you just fold it/squish it around and form a new rubbing surface. the "clay" actually has a consistency like a tough, very sticky Play-doh. The lube you get with the bar (or a spray bottle of soapy water) allows it to glide over the surface of your paint.
Claying is well worth it for the result. Once you "figure it out" it takes almost no effort and is pretty fast too.
So will this take out the stain my car has from bird shi*?
No it wont. Bird s*** seems to really do a # on paint. I havnt come across anything to fix that kind of stain. Buffing helps but you will still see it.