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yes, you do need to do it on a new car. i did on my new 330...
proper technique can be found under the detailing section @ bimmerforums.com, but put simply you mist a 3x3 section from a spray bottle mixture of something like 1 part car wash and 8 parts water and then use the clay (flattened somewhat, of course) as an eraser. keep the area you're claying as wet as you like. you'll be amazed at what it does to the surface.
read the details @ bimmerforums, but if you drop the clay then you immediately discard it. therefore, cut the clay pieces up into about 8 sub-pieces and keep it spotless. otherwise you risk picking up debris that you may then rake across your finish...
good luck,
-e-
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