Sales of foreign-made cars came to just under 80,000 units for the first half of 2003 – more than the usual annual figure just a couple of years ago.

Yulia Zavgorodnaya, head of advertising at the Skoda car center, said there was a boom in foreign-made car sales at the beginning of this year. As soon as dealers received their deliveries of new cars, they would have to start ordering new shipments just to keep up with demand, she said.

If the demand continues, and if analysts’ warnings of a possible crisis in September-October do not come true, then this could turn out to be the most profitable year ever for the foreign-made car market in Russia.

American and German carmakers still enjoy a solid footing on the Russian market, while Korean and most Japanese car manufacturers continue rapid expansion. Thus far, companies using dollars as their payment currency have had no problems, but the situation was not so simple for players from the euro zone.

"Many Russians are encouraged to visit car dealers by the load of dollar savings they’ve accumulated that look superfluous now that the euro is strengthening," said Alexander Sidorov, sales director at the Suzuki car center. "Sales are also helped by the attractive loan programs most dealers now offer."

For Russian cars, the situation is far from ideal. Production levels for cars, off-road vehicles and minibuses remained stable last year, but there are few reasons for optimism. Demand has fallen for cars from AvtoVAZ, GAZ and UAZ, the three largest Russian manufacturers. But dealers selling Russian cars hope that introduction of customs duties on secondhand foreign-made vehicles will soon help increase their sales.

Trade-ins more popular

Among the services car dealers provide, trade-ins are now almost as popular today as loan schemes for purchasing automobiles. However, while today’s loan schemes are more-or-less clear, few in the business seem to be able to explain how trade-ins actually take place, whether they are worth it, what their benefits are and what ordinary customers should know in order to get something out of the scheme.

Trade-in schemes are a relatively recent phenomenon on the Russian car market. As a rule, cars accepted as trade-ins cannot be more than seven years old. Demand and supply, age, make, model, state of repair and kilometers driven are the main factors that determine a trade-in’s value.

In many dealerships, clients do not have to bring their car to the center to get its worth evaluated. Instead, they fill out a form by e-mail or do the same procedure over the phone.

But trade-in schemes also give rise to certain problems. For example, car owners and car dealers do not always manage to find a common language. Car dealers do not want to run trade-in schemes working with very old cars and completely new ones, while car owners are often reluctant to trade in a car that is not very old and still in decent condition.

"We are consistent in our support for civilized methods of car dealing, and trade-ins are one," said Natalya Volkova, project manager at Avtomir. "That is why we try to avoid methods that could perhaps figure in an encyclopedia on divorce, but are not worthy of civilized people.

"You need to really have a heart-to-heart talk with the sales manager. This is the person responsible for valuing and accepting your car. The sales manager is also human and can make mistakes sometimes, sometimes even in your favor. The main thing is to talk the right way."

How often should you get your car serviced?

One of the requirements of guaranteed car service is regular checkups at a garage certified by the car’s manufacturer.

Toyotas, for example, have to go through checkups after every 10,000 kilometers. For Corolla models, the first checkup costs around $125, the second $160, the third $125 and the fourth (at 40,000 kilometers) $375. (There is also a checkup after 1,000 kilometers that the seller pays for.) After the fourth checkup, the cycle repeats itself.

Russian Audi dealers recommend going through a checkup after every 15,000 kilometers, though in Europe Audi lets drivers do 20,000 kilometers before getting a checkup. Audi owners generally pay around $212 a year in maintenance costs over the first two years after purchase.

But there are also cars with average maintenance costs of only $163.50 a year. This is the case of Peugeot, for example. A Peugeot with a gas engine can clock up to 30,000 kilometers before it needs to be serviced.

Not all dealers agree with the idea of letting cars clock up a good run before getting serviced, however.

"I don’t think it’s acceptable to let cars have such a long run between servicing," said Vladimir Balyshev, general director of Bangot-Electronics, Kia’s official dealer in the Northwest District. "You mustn’t forget about our climate, the state of our roads and the quality of our gas. In Europe, where the gas is very clean, 30,000 kilometers is acceptable, but it is too much for our conditions. Over that time, the engine oil loses a lot of its functions. And it’s not just the oil that’s the problem. You also need to get the suspension and other parts of the car checked from time to time."

The most common services

"On the basis of a contract with the plant, our dealership offers servicing to get cars ready for resale, repair and guaranteed repair," said Natalya Nazarenko, manager of the DIM+Ko car salon.

‘To encourage sales, we have loan programs – from 9.9 percent – leasing and trade-in schemes. The company is always developing new ways of attracting clients, such as bonus books, discounts, discount cards and special joint programs with the avto.ru system. Now we can also offer armored Skoda Superb cars and special-purpose cars (traffic-police cars, taxis) for federal programs. Since the beginning of 2003, we have also been an official subdealer for Peugeot cars."

Avtodom, an official dealer for BMW and Mini, puts the emphasis on trying to stand out among other car dealers that often offer the same list of services. Sergei Babenkov, Avtodom’s marketing and advertising director, said that clients can take part in what he called a "Mini-trip."

A team of specialists headed by Rauno Aaltonen has developed a training program for active drivers. Aaltonen won a Monte-Carlo rally in a Mini in 1967 and knows more than anyone about driving this car in all kinds of situations.

The training program for would-be Mini drivers takes place at the BMW driving school at the Munich airport. The students learn the basic principles and essentials of driving technique. Customers who buy a Mini at Avtodom before Aug. 31 will get the chance to do the course for free.

Skoda’s Zavgorodnaya said that, as well as having its own sports team that takes part in Russian rallies, the Skoda dealership also has a driving school offering classes for non-professionals and courses for professional drivers.

Elite Maybach finds its niche

For those looking for – and who can afford – a little something extra, the exclusive Maybach may be just the thing.

According to the Moscow DaimerChrysler house, customers wanting to buy a Maybach are first invited to the Maybach studio, in a separate room, where the lengthy process begins of personalizing the car – choosing the additional features, interior and extra options.

Customers are also introduced to a personal manager whom they can consult and who can perform a number of other services on request – for example, visiting the Maybach factory, planning a servicing timetable or booking tickets for upcoming Formula-1 races. Customers can get in touch with their personal managers at any time by pressing a button on the telephone in their car.

The Moscow DaimlerChrysler house’s first client was Rustam Tariko, chairman of the board of directors of Russky Standart, who bought two cars for a total of more than $1 million.<