September's second COE bidding exercise closed with significant drops to premiums for Cat A and B, whilst premiums for Cat E again rose very slightly.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output no more than 130bhp, dropped by $1,690, a decrease of 3.1 percent, to end the bidding tender at $55,399.

Prices for Cat B, larger cars with more than 130bhp or engine displacement larger than 1,600cc, went down by $2,100 (3.5 percent) and ended at $60,001.

In Cat E, the open category, premiums went up by $290 (0.5 percent), with premiums closing at $61,300.

Cat A COE premiums have dropped to the lowest point all year, with Cat B premiums coming close to dropping below the $60,000 mark. This is a positive sign for people looking to purchase new cars in the near future.

The decrease in prices could be due to motorists playing the waiting game, choosing to purchase eight or nine-year old cars to tide over this period, in hopes that COE premiums will drop further. It was also recently reported that taxi app operators are snapping up these older cars to grow their fleets, causing a drop in the demand for new cars.