[Mitch Evans]

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In their example, the dealer's asking price was $22,000, the opening offer was $17,000, the dealer's counter offer was $21,000, and the buyer's next offer was "how about $17,025? Well, $17,030?" The idea being to show that you're a "tough negotiator" I suppose. Does this work?

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Clarkmeister recently bought a car using almost exactly this technique. Except, he didn't give them even $25. He told me the story something like this (forgot the exact numbers):

Them: 34?
Him: 28
Them: 33.5?
Him: 28
Them: 33?
Him: 28
Them: 32.5?
Him: 28
Them: 32, and that's as low as we can go
Him: I know you'll go to 28, so can we just get this over with?
Them: 32 is as low as we can go.
Him: I faxed orders to other dealers, and the lowest offer got just a few hundred above 28. So it's 28 or nothing.
Them: 31?
Him: 28
Them: 30?
Him: 28
Them: 29.5?
Him: 28
Them: 29?
Him: 28
Them: 28.5?
Him: 28
Them: 28.1? (Yes, they really offered him his price plus $100... that's balls)
Him: 28
Them: Ok.

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I'm willing to try this technique. Worst case I just find another car.

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If you are not doing this, you're paying too much for your car. You need to research the hell out of the car you're interested in (do the things Ed said), and never budge from the price you're willing to pay. That's the way it's done. They will come down to your price.

Also, don't get raped in the finance department. You can get the 100k mile extended warranty for around $500, not $2k. Don't pay doc fees either. That's their cost of doing business and don't hesitate to tell them that. Just say you never pay doc fees and won't start anytime soon.