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Right 1st thing 1st, Get rid of the leather shammy and get a micro fibre drying towel.
2nd get yourself onto detailing world and have a look round.
3rd new routine, follow this and you'll see a massive improvement -
1st - pre rinse, even if this is just with a hose as it shifts dust and grit particles that scratch the paint.
2nd - Make sure you use a good shampoo, something like Zymol autowash (about 7 quid from halfords) it smells like coconut but its also very lubricating so will lift and trap dirt in the shampoo itself, meaning less scratches.
3rd - Get yourself a decent wash mitt, (again dirt cheap from halfords, asda or even b&q), sponges just scrape dirt everywhere scratching your paint, mitts lift it into the material and away from your paint.
4th - This is where the drying towel comes in, a nice soft drying towel will soak up much more water than a leather shammy and is also again gentler on your paint.
5th - a decent polish, now for something like your car I'm going to say Autoglym super resin polish, this stuff works wonders, Just apply with a sponge applicator pad wait till it hazes up and buff off with a microfiber cloth.
6th - If you want to wax it then I would say as above go with collinite wax, the stuff lasts for ages, is easy to apply, looks good and beads like a dream.
All of the above gear can be brought very cheaply and reliably from www.cleanyourcar.co.uk or do a google search for waxamomo.
But 1st up get yourself over to www.detailingworld.co.uk and have a look around, theres plenty of advice and friendly people over there.
It seems that halfords try to employ numptys for the fun off it!! When I was looking at a new stereo I said it's double din and all they wanted to do was sell me a single din haha!! I only went in there because they had the Sony unit I was looking at cheaper than anywhere else. Needless to say my money went else where and I ended up with a pioneer