Drill a pilot hole through the sill plate with a 1/4-inch drill bit to mark where the vent will go. Go outside and determine if the selected vent location will work. The vent needs to be at least 12 inches above the ground and at least 12 inches away from any central air units or other obstructions.
Center the vent cap over the hole you drilled. If you need to shift the vent cap because it doesn't fit in that location, move the vent cap over slightly so it fits against the siding and drill a new 1/4-inch hole to mark the new center.
Center a 4 1/4-inch hole saw over the center hole against the siding. Hold the drill steady and apply slight pressure. Remove the siding from the hole saw with a flat-head screwdriver once you drill through it. Finish drilling the hole through the sill plate.