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Do you have a single piece of vinyl siding that has been damaged and needs replaced? This job may seem daunting at first, but you really need only a single tool in addition to a hammer, a pair of pliers, and some tin snips.
This siding tool is called a siding removal tool, and costs under ten dollars. It's basically a curved metal hook with a plastic handle. The hook is made to fit under the siding to pull the siding above the piece being replaced. The job, described in a general way, goes like this: go all the way down the piece of siding in this manner, to expose the nails which need to be removed to take down the damaged piece.
Pull the nails, push down on the damaged siding to remove it from the "starter strip" it is connected to, then replace with a new piece that is as close to the original as you can find. You'll need to cut it to match, hence the tin snips. Once the new piece is cut, slide it into place, and use the siding removal tool to hoist the new piece into place on the "starter strip". You then nail it into place, but leave the nails sticking up a bit for easy removal (remember what the old nails looked like before you pulled them? Hammer to about the same depth.) Then push the upper panel into position. The last thing to do is do what you did with the siding removal tool, but in reverse. This is a general description, be sure to try a replacement job on a single piece to fully understand the procedure before undertaking a large replacement job.