I would stay away from the sponge. I would recommend a Sheepskin Wash mit (Not a synthetic/fake sheepskin). I would use a couple wash mits. One for the top/hood/trunk/ and upper portion of the doors. One for the Nose/rear bumper and lower side skirts of the car. For drying I would recommend buying the large Microfiber towels from Target, (I have 4 that I use for drying only). When drying don't use any pressure. Just glide the towel over the car.
Finally, finish with a good spray detailer and microfiber. This is not required but will add a nice shine.
As for a wax/sealant, this is your choice. For something simple, I would recommend NXT 2.0. Very easy to use and will give good protection.
For serious detailing, look into the Zaino line.
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