Motor traders said the sharp drop in Certificate of Entitlement (COE) premiums for cars above 1,600cc two weeks ago, when the premium fell from $92,667 to $58,090, sparked buying interest.

The age-old rivalry between BMW and Mercedes-Benz added fuel to the frenzy, with the latter rushing to clear stock of its current E-class sedan before a new model arrives.

Certificate of Entitlement (COE) premiums for cars up to 1,600cc continued to ease at the latest tender on Wednesday, ending at a six-month low of $64,209 - down from $74,689 two weeks ago.

But all other premiums ended higher. COE premiums for cars above 1,600cc rebounded from $58,090 to $73,900, while Open COE, which can be used for any category but is mainly used for luxury cars, closed at $73,301 - up from $65,001. Commercial vehicle COE closed at $54,111, up from $53,900. Motorcycle premium inched upwards to $1,909, from $1,895.