I paid 1500 over MSRP a couple of weeks ago at Anderson Honda, Palo Alto. If I had been more patient, I think I could have done much better (0-1000 over MSRP).

After I bought the car, I was received multiple calls from sales people. I received one this last weekend as a matter of fact. I'm convinced that if patient enough, you can pay much less than I did.

Here's a quick run-down:

Dublin Honda - Wouldn't go below 2225 over MSRP, until I drove away. Then they went down to 2000 over.

Corte Madera (Marin) Honda - Agreed to sell to me at 1000 over when I called in the morning. However, they had sold the car to someone else by the time I was half-way there (driving from the south bay).

Anderson Honda (Palo Alto) - Wanted 2000 over MSRP. I said I would buy it for 1500. They said OK. I guess I was too easy.

Other places I called either didn't have it, or wanted 3000-5000 over MSRP. If you have the time, I call all the dealers in your area first to make sure they have a car on the lot. Then, drive over and see if they'll make a deal. If they're not in your range, leave a number and drive away. Repeat at the next dealer. If you don't have a car at your price, either be patient, or call them back later in the day (or later in the week).

I've found that your bargaining powers are much better when the showroom is less crowded (sounds simple enough). And, sometimes it has to do with which manager is on duty at the time - at least on salesperson told me as much. So, it helps to check back and talk to different people.

Hope that helps.