I'd suspect that it's a combination of many factors including increased production, lower gas prices (but maybe not for long), decreasing tax credit, and the fact that it's no longer as "new" - there are 2007 Camrys everywhere now. I don't think it's a sudden change either, as my base model is over three months old (12/28/06) and I only paid about $500 more than that (and I'm a terrible negotiator).