Don't do it
You make too much money to buy a car too small for you.
You will be stuck in traffic.
You will be uncomfortable.
For long periods of time.
Every moment stuck in traffic, in a cramped car, you'll be kicking yourself (mentally, could not do it physically, too tight)). This is YEARS of pain.
Add the inevitable occasional head smash. It WILL happen in a small car.
Add the fact the Camry is probably safer (have not bothered too look it up though).
For what? For $3K difference. Divide it over the hours of pain, and it will be well worth it.
If you negotiate, do it with the attitude of leaving and buying a different brand, not merely dropping down a level and buying from the same dealer. Maybe they make more the on the Corolla!
Also, have you figured out the baby seat choreography? Really difficult in a small car. How's your back? Gonna get worse.
Also, political issues arise.
If you are in an office of people, and you have the smallest car, you will never be asked do drive for lunch or meetings, which you may think is a good thing. You would be wrong though. There is a subtle power dynamic that comes into play when you are the driver of the group, especially if the group includes your boss or co-workers in another department. Make use of it. Rack up the brownie points and favors owed. No one would ever admit that they favored you in a decision for something so silly, and it would not be conciously, but every little bit of leverage helps.
