How do I respond to a dealer's counteroffer?

Compare the counteroffer's out-the-door total with your research and your walk-away number. If it's close, you might accept or ask for a small concession such as removing an add-on. If it's far apart, explain your number with specific comparable vehicles and stay polite. You can also simply say no and keep shopping. Never feel pressured to decide on the spot; ask how long the counteroffer is valid and get it in writing.