The premium for cars up to 1,600cc closed at $1,020, less than half the previous rate posted two weeks ago.

Certificates of entitlement for cars above 1,600cc rose by more than three times - to end at $689. That is less than a year's road tax of $740 for the ubiquitous 1.6-litre car.

The Open COE, which can be used for any vehicle type but ends up mainly for cars, sank to a new low of $3,000 - from $3,200 previously.

Barely six months ago, these COEs each averaged $14,000. And they were above $25,000 less than six years ago.

The weaker demand was attributable to growing uncertainties on the back of the economic slowdown, as well as the long Chinese New Year break which saw many dealerships closed.

Business was reportedly brisk when showrooms reopened last week. Dealers wooed buyers with bargain prices such as $37,000 for a 1.6-litre Hyundai Avante and $45,000 for a 1.5-litre Toyota Vios.

But orders did not exceed the supply of 4,430 COEs by much. According to the Land Transport Authority, the bids-to-quota ratio remained weak at yesterday's tender, with only 1.25 bids for every available COE.

Mr Ron Lim, general mananger of Nissan agent Tan Chong, said there were still 'a backlog of Open COEs' - some fast expiring - in the market. 'So a lot of orders may be cleared with these Open COEs,' he said, explaining why the apparently brisk sales did not lead to higher premiums.

Dealers are expected to lower car prices after yesterday's tender. Tan Chong said it would probably cut small car prices by $1,000, while Suzuki agent Champion Motors has already started reductions. The Suzuki Swift Sport, for example, now starts at $49,900, down from $52,900.

Meanwhile, the COE premium for commercial vehicles ended at $2,590, from $2,900 before. And the motorcycle premium closed at $701, from $900.