The holiday season coupled with the slow economy is pushing down Certificate of Entitlement (COE) premiums.
At the latest tender exercise which ended yesterday, premiums for bigger Category B cars fell below those for smaller Category A cars, tumbling to $46,229 from $53,001 two weeks ago.
This was a drop of nearly 13 per cent - and the second straight fall. Last month, the COE premium was $56,206.
The price for Category A COE, meant for smaller cars up to 1,600cc and 130bhp, fell to $48,000 from $50,951 two weeks ago - a fall of nearly 6 per cent and also the second straight drop. The premium was $52,668 last month.
The price for the Open category COE, which can be used for any vehicle type but ends up mainly used for big cars, also fell. Premiums dropped by 8.9 per cent from $54,901 to $50,010. A month back, the COE price was $56,000.
Singapore Vehicle Traders Association first vice-president Raymond Tang noted that COE prices for the Open category remained "steady", unlike the other two categories, which dipped below the $50,000 mark.
Mr Tang said: "There's a motor show next month at Suntec, so motor dealers are going for the Open category COEs. These COEs can be used to register any type of cars."
Mr Nicholas Wong, general manager of Kah Motor, attributed the falling car COE prices to weaker market sentiment, although he said demand for Category A COEs - used for "bread-and-butter" cars - will always be there. This is why the Category A prices finished higher than those in Category B.
He added: "With the generally lower COE prices, buying interest should return, and customers will be back in the showrooms soon."
The COE price for goods vehicles and buses rose by 4.5 per cent - from $49,002 to $51,209. Motorcycle COE premiums fell by $99 - from $6,212 to $6,113.