Tools needed: roll of electrical tape, scissors, tape measure, squeegee or old credit card. (A spray bottle with Windex or mildly soapy water is optional.) Waxing the paint before starting will help with bubble removal and make the decal easier to remove later.
1. Without removing the backing paper, position the decal where you want it and place a continuous piece of electrical tape along the top edge of the decal to hold it in place. Double check to be sure it's lined up the way you want it.
2. If the decal is small enough to apply in one piece (no more than 4-6" wide) go directly to step 4.
3. If the decal is wide and/or consists of numerous characters or images make vertical cuts between each character from bottom to top (cutting through the transfer paper and backing paper, but not all the way through the tape) so that each character hangs like a flap against the car, but is held in alignment by the tape.
4. Lift up the decal (or one segment of the decal), being careful not to undo the tape at the top, and starting from the top peel about half the backing paper away from the transfer paper and vinyl letter. Use the squeegee to lay it flat against the car working slowly and carefully from the top to the bottom removing the rest of the backing paper as you go. Use extra care as you lay the letter over any creases to be sure the decal doesn't gap over the crease.
5. Once all the segments have been applied you can remove all the tape and transfer paper.
If any bubbles appear under the vinyl, use the squeegee to work them toward the nearest letter edge. If one appears to be permanent, use a pin or the point of a razor knife to put a small hole in the vinyl, then use the squeegee to work the air toward the hole. Many of the tiny bubbles will dissappear with time * don't worry about them.
Some people prefer to use a little soapy water or Windex when applying the decals to help prevent bubbles. The water or Windex helps keep the decal's adhesive from sticking, allowing you to work the bubbles toward the edge more easily, but it also tends to make the transfer paper soggy and can ruin it in a hurry. If you use water or Windex, use it sparingly. (I prefer the "dry" method.)