A method of attaching a clinch spacer to a panel including forming a clinch spacer having a body portion including an axial bore, an annular flange portion surrounding the bore and an annular barrel portion integral and coaxially aligned with the flange portion having a diameter less than the flange portion including an end face having an outer lip extending at an angle radially outwardly and axially from the end face; forming an opening in the panel; and driving the barrel portion through the opening in the panel against a die member having a generally V-shaped annular projecting lip which is driven against a second face of the panel, deforming the panel radially inwardly against the outer surface of the barrel portion and deforming the outer annular lip radially outwardly and axially against the panel, forming a secure installation.