Certificate of entitlement (COE) prices ended lower across the board in the latest tender yesterday, as consumers remained cautious in the light of economic uncertainties.

The COE premium for cars up to 1,600cc and 130bhp fell by 10 per cent to close at a three-month low of $26,999. The premium for cars above 1,600cc or 130bhp fell by 9.6 per cent to finish at a four-month low of $35,906. The price for the Open COE, which can be used for any vehicle type except motorcycles but which ends up mostly for bigger cars, slipped by 6.2 per cent to close at a three-month low of $39,400.

Mr Neo Nam Heng, chairman of diversified motor group Prime, said showrooms in the motor belt in Ubi and Leng Kee have been "like ghost towns" in the past month. "We're facing uncertainties in the economy," he said, adding that the strengthening Japanese yen also contributed to the weaker bids.

The rising yen, he said, has added "$3,000 to $6,000" in cost per car. This, in turn, eats into the profit margin of car traders, who then have less buffer for COE bids.

Mr Neo noted that the oversupply of private-hire cars is another factor. New regulations governing the private-hire and taxi industry are expected soon, prompting operators to hold back on buying more cars.

Market observers said a record number of people extending the lifespan of their vehicle COEs in the first quarter may also have reduced replacement demand. If this persists, premiums should remain soft for the rest of the year.

Meanwhile, the commercial vehicle COE premium ended $1 lower at $25,501. This is its lowest since 2011, signalling weaker demand for business vehicles.