I went to the local dealer and..... they refused to match it. They tried but the basically told me the other dealer's quote is impossible as any dealer would be losing too much money on it.
They then proceeded to tell me that given my annual income, why was I spending time quibbling over $500. I politely pointed out that it was my business how I spend my time searching for the best deal. I also told them that based on their counteroffer, the difference was $900 over 3 years. He then told me given depreciation, etc., it was $500. That sounds like dealer obfuscation: confuse me, tell me I'm wrong.
They then told me what their sales people make and that "thank god" I have a job that pays so well. I politely told them that those facts were irrelevant. I almost asked they if they were a 501c3 charitable organization so I could get a tax deduction of what I might be overpaying. But I didn't. I understand they are trying to make a living too.
They then wanted me to call the other dealer right in the showroom to confront them about the accuracy of their quote. I politely told them that I would find out the legitimacy of their offer from the friendly confines of my own home, as I needed a breather. I acknowledged that they didn't want me to leave the showroom as they were probably worried I would not return. I told them that I would verify the other dealer's quote and that if it were real I would buy from them. Then they told me that it would be better to support a local business. I told them that if the competitor's deal was in fact fake, then I would return. We politely shook hands and off I went.
I made one error in the negotiation. Before we reached a deal on the upfront costs and lease payments, the salesman started filling out an application, which I thought was a credit check application. During that process, I disclosed my annual income. I think they used that to shape their approach to me. Next time, I will not disclose any such information until we have a signed agreement pending a credit check.
Update tomorrow.