A method of applying a multilayer coating to a substrate comprising: (a) applying a color-imparting, pigment-containing basecoat composition to a substrate to form a curable color-imparting basecoat layer, and (b) applying a curable unpigmented coating composition to the basecoat layer to form a clear or transparent coating layer over the basecoat layer, wherein the basecoat layer is formed by depositing a polyhydrazide-containing curable aqueous composition comprising: (i) a continuous phase comprising water, and (ii) a dispersed phase comprising: polymeric particles prepared from the polymerization of a mixture of ethylenically unsaturated monomer compounds, including ethylenically unsaturated monomers comprising: a multi-ethylenically unsaturated monomer and an aldo or keto group-containing ethylenically unsaturated monomer; and a hydrophobic polymer prepared from polymerizing the following mixture of ethylenically unsaturated monomers: a C 8 to C 20 alkyl ester of (meth)acrylic acid; a polymerizable ethylenically unsaturated monomer comprising a polar functional group; and optionally, a polymerizable ethylenically unsaturated monomer, wherein, and are different from each other; and wherein the polymer has a theoretical glass transition temperature of -10°C. or less, as calculated by the method of Fox on the basis of monomer composition. (a) applying a color-imparting, pigment-containing basecoat composition to a substrate to form a curable color-imparting basecoat layer, and (b) applying a curable unpigmented coating composition to the basecoat layer to form a clear or transparent coating layer over the basecoat layer, wherein the basecoat layer is formed by depositing a polyhydrazide-containing curable aqueous composition comprising: (i) a continuous phase comprising water, and (ii) a dispersed phase comprising: polymeric particles prepared from the polymerization of a mixture of ethylenically unsaturated monomer compounds, including ethylenically unsaturated monomers comprising: a multi-ethylenically unsaturated monomer and an aldo or keto group-containing ethylenically unsaturated monomer; and a hydrophobic polymer prepared from polymerizing the following mixture of ethylenically unsaturated monomers: a C 8 to C 20 alkyl ester of (meth)acrylic acid; a polymerizable ethylenically unsaturated monomer comprising a polar functional group; and optionally, a polymerizable ethylenically unsaturated monomer, wherein, and are different from each other; and wherein the polymer has a theoretical glass transition temperature of -10°C. or less, as calculated by the method of Fox on the basis of monomer composition. (i) a continuous phase comprising water, and (ii) a dispersed phase comprising: polymeric particles prepared from the polymerization of a mixture of ethylenically unsaturated monomer compounds, including ethylenically unsaturated monomers comprising: a multi-ethylenically unsaturated monomer and an aldo or keto group-containing ethylenically unsaturated monomer; and a hydrophobic polymer prepared from polymerizing the following mixture of ethylenically unsaturated monomers: a C 8 to C 20 alkyl ester of (meth)acrylic acid; a polymerizable ethylenically unsaturated monomer comprising a polar functional group; and optionally, a polymerizable ethylenically unsaturated monomer, wherein, and are different from each other; and wherein the polymer has a theoretical glass transition temperature of -10°C. or less, as calculated by the method of Fox on the basis of monomer composition. polymeric particles prepared from the polymerization of a mixture of ethylenically unsaturated monomer compounds, including ethylenically unsaturated monomers comprising: a multi-ethylenically unsaturated monomer and an aldo or keto group-containing ethylenically unsaturated monomer; and a multi-ethylenically unsaturated monomer and an aldo or keto group-containing ethylenically unsaturated monomer; and a hydrophobic polymer prepared from polymerizing the following mixture of ethylenically unsaturated monomers: a C 8 to C 20 alkyl ester of (meth)acrylic acid; a polymerizable ethylenically unsaturated monomer comprising a polar functional group; and optionally, a polymerizable ethylenically unsaturated monomer, wherein, and are different from each other; and wherein the polymer has a theoretical glass transition temperature of -10°C. or less, as calculated by the method of Fox on the basis of monomer composition. a C 8 to C 20 alkyl ester of (meth)acrylic acid; a polymerizable ethylenically unsaturated monomer comprising a polar functional group; and optionally, a polymerizable ethylenically unsaturated monomer, wherein, and are different from each other; and