A coating composition comprising a film forming binder of a. an acrylic polymer having pendant groups that are reactive with isocyanate moieties and having a glass transition temperature (Tg) of 10 to 80.degree. C.; b. a polytrimethylene ether diol having a Mn (number average molecular weight) of 500 to 5,000; and c. an organic polyisocyanate crosslinking agent; wherein the coating composition contains pigments and cures at ambient temperatures or elevated temperatures and forms a coating that is sandable and when used in combination with a top coat, for example, a colored base coat and clear coat or a pigmented mono-coat forms a chip resistant multi-layer coating useful for refinishing or repairing automotive and truck bodies and parts the coating composition can be used as an exterior clear coating composition primarily for automobiles, trucks and parts thereof.

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