What is a Decal? A Decal is a different product compared to a Sticker. A Sticker is a sticky label with a design printed onto it (like a postage stamp). A Decal is precision cut from vinyl - there's no "background" compared to a Sticker!
A Decal has three parts as pictured below:

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Basically, in putting a decal on, peel the top layer away from the bottom layer - but make sure the decal sticks to the top layer! Position the top layer over the surface you want the decal to stick to, and then place it against the surface. Use your fingers to smooth/rub the decal against the surface, then carefully peel back to top layer, making sure the decal sits against the surface. Basically - you're done; that's the Dry Method!
Warning! The wet method is more time consuming and relies on careful, skilled application. If you're unsure of your ability to put on a decal using the wet method, ask a friend who has done it before, or seek professional application from a signwriter, auto body shop or window tinter! Unfortunately we cannot give refunds or replacements for decals unless they're in original condition; damage from poor application is not covered.
In the following information, application of side stripes to a Ford Falcon is used as a demonstration, however the basic principles apply to any large decal, side stripes, bonnet stripes, window banner etc. Hint: NEVER apply decals in the wind, and ALWAYS get a friend to help with large decals! Avoid very cold weather (too cold) and avoid direct sunlight (too hot!)

First, clean the surface that the decal will go on. For car panels, something like a clay bar will remove all surface impurities. Wash and wax if you like, but you shouldn't apply decals for 24 hours after a coat of wax. Make sure there's no dust or contaminants on the surface, as even a tiny speck can show through the vinyl!

Next, make up a mixture of soap and water for your application fluid. Mix about 2 litres of water with a LITTLE BIT (few drops) of detergent, hand soap liquid, or car wash liquid. It's important not to use too much soap (or the decal won't stick)!

Dab on your water mixture onto the surface. Make sure it's wet all over!

Next, peel away the top from bottom layer, making sure the decal (stripes) stick to the top layer.

Place the decal against the wet surface. The detergent will give enough slipperiness that it will stick, but can still be moved. This allows you to line up the decal just right! You can eyeball it, or use markers to help perfect placement. For example, use a bit of masking tape, a ruler & a pencil to help level things out.
Once you've got things where you want it, squeeze out most of the water using your fingers, or a squeegee, or an old credit card (see the next few pics down!).

Then, carefully peel back the tape. Because there will still be some water left, the decal will lift a little, so go slowly and make sure the decal stays down! If you look closely as the pic above, there's some water bubbles below the decal.

Once the application tape is off, use your fingers/squeegee/old credit card to get rid of the last bits of water/detergent. I favour the card, myself! Be careful to not rip the vinyl, always pull the card along, not pushing the edge forward (see picture above; I'm moving my hand to the right).

Where the decal goes over panel gaps, use a sharp razor/scalpel to cut through.

Simply fold back the end which extends over the gap. Or you can cut it flush with the panel if you want.

Now, where stripes or large decals go around curved surfaces, you need some skill! Here, I've cut through the application tape where the two stripes reach around the front corner to the foglight. I then removed the application tape and positioned the vinyl itself by hand before smoothing it down with my old credit card.

The end result: a beautiful stripe kit all applied! You may find the odd water bubble or air bubble remaining, they sometimes come out as the water evaporates after a day or so. Or use a pin to pop the bubble and smooth the vinyl down.
Ideally, finish up now by going over the entire decal with a hairdryer on low heat; this will help the vinyl get stickier against the panel, ensuring a strong grip.