TALLINN - Many Estonian motor vehicle dealers are anticipating record sales in 2004 thanks to foreigners flocking to Estonia to buy vehicles that are significantly cheaper than elsewhere in Europe.
"We're anticipating a record year, too," said Toomas Parna, marketing chief for BMW dealer United Motors.
Sales by United Motors during the first four months of the year surged 53 percent over the same period last year. If last year the company sold 250 new cars, then in 2004 the target stands at 380. This is largely expected to result from more efficient work by the dealer and an array of new models.
Depending on the make, an hour of service at facilities in Estonia costs up to three times less than elsewhere in Europe, the business daily Aripaev reported.
Still, despite the advantageous prices, dealers will not be allowed to market their merchandise outside Estonia until October 2005.
"But one is allowed to do it passively," said Hindrek Mannik, sales director for Esma Auto. "Quite a lot of people interested in buying a car have already turned to us."
Mannik predicted that agents would emerge first to gather buyers' wants and then buy a larger number of vehicles, while handling all the necessary documents.
"It is difficult to offer a forecast in terms of sales, but this may add anywhere from 10 to 15 cars to monthly sales," Mannik said, adding that most of the price inquiries were coming from Germany, Denmark and Sweden.
"I haven't heard that we're having a lot of new people interested in making a purchase. The buyer of a Mercedes vehicle isn't particularly price-sensitive," said Raivo Murde, PR manager for the Mercedes dealer Silberauto.
"But we do have many Mercedes owners from Finland and Sweden coming to have their car serviced here. Some weeks we have 10-15," Murde added.
The marketing chief of United Motors said the same. "We're seeing more and more cars with foreign number plates in our service area. Most who come are from neighboring countries -- Finland, Sweden, Latvia, plus tourists from central Europe," Parna said.
