Riga - With sales of new cars in Latvia shrinking by more than a third in the first ten months of 2008 according to figures released Monday, it was left to carmakers at opposite ends of the price spectrum to report the strongest results.

Total sales of new cars in the Baltic country for January to October dropped to 10,434 from 17,239 in the same period last year, according to the Latvian Authorized Car Dealers Association.

With an economic downturn well underway, Latvians appear to be weaning themselves off their hitherto insatiable appetite for the latest automotive metal and are making do with older models and cheaper new cars.

In October, just 1,183 new cars were registered, the lowest monthly figure of the year.

While market leaders Toyota, Volkswagen and Honda all suffered big falls in their sales figures, Russian carmaker Lada saw its sales rise by 66 per cent to 449.

Once a byword for poor quality engineering and an unwelcome reminder of the days before 1991 when Latvia was part of the Soviet Union, Lada is making a comeback even while Latvians prepare for November 18 when they celebrate 90 years since winning their independence for the first time.

Normunds Avotins, presenter of Latvia's top-rated TV car show, told Deutsche Presse-Agentur dpa: "The story with Lada is quite simple: Ladas are the cheapest new cars available, underpricing even the Dacia Logan."

"It stinks inside like a post-communist chemical factory, but some people are used to that, and any new Lada is far better and safer than a ten-year-old Ford Sierra," said Avotins.

But clearly there are still some deep pockets in Latvia as the biggest percentage increase was recorded by Italian sports car specialist Ferrari, which doubled its sales - albeit from two cars in 2007 to four in 2008.

Anyone looking for a used bargain with one careful owner might like to consider a car that is just coming onto the market.

Parex Bank founder Valery Kargin, who is selling his stake in the bank for just 1 lats (1.80 dollars) as part of a government bail-out, is among the ranks of Latvians looking for more economical motoring, it appears.

The man widely believed to be the country's richest individual has put his 390,000-dollar Maybach limousine up for sale, said newspaper Diena on Monday. (dpa)