A curable coating composition with holdout capability, and methods of use thereof, useful in providing a chip resistant two-tone finish in a reduced number of coating steps and curing cycles, which contains a hydroxyl-functional polyester resin, or a plurality of hydroxyl-functional polyester resins, with an average hydroxyl functionality of at least 2.1, a hydroxyl number of 75 to 400 mg KOH/g, a number average molecular weight of 1,000 to 10,000, an acid number of 1 to 30; a curing agent; and, a barium sulfate pigment This invention is also directed to method for coating a substrate with the above coating composition. In one embodiment, the method comprises (1) applying a holdout capable chip resistant primer coating composition of the forgoing character to an accent area of a electrodeposition primed substrate, (2) applying a primer surfacer coating composition to an adjacent non-accent area of the substrate, (3) applying an accent color basecoating composition wet-on-wet to the chip resistant primer coating composition in the accent area, (4) curing the composite coated substrate in a first bake, (5) covering the accent area with a protective membrane, (6) applying a main color basecoating composition over the unmasked area, (7) removing the protective membrane from the accent area, (8) applying a clear coating composition wet-on-wet to all faces of the substrate, and then (9) curing the composite two-toned coated substrate in a second bake, is also claimed. Further claimed is a substrate coated by the aforementioned coating and methods.