What is a counteroffer when buying a car?

A counteroffer is the seller's response proposing different terms, usually a price between their asking price and your offer, or the same price with different fees, add-ons or trade-in value. Review it as a full out-the-door number and check what changed. You can accept, decline, or counter again with an explanation based on your research. Keep everything in writing so the final contract matches what you agreed.