The first COE bidding exercise for February saw prices drop substantially across all categories.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output no more than 130bhp, ended at $62,002 - a decrease of $2,999 or 4.6 percent.

Cat B premiums, for larger cars with more than 130bhp or engine displacement larger than 1,600cc, took the largest dip of $5,999 or 7.8 percent to end the bidding tender at $70,890.

Premiums for the Open Category, also known as Cat E, ended at $71,921 from $76,790 two weeks ago - a difference of $4,869 or 6.3 percent.

The latest exercise marks one of the most substantial drop in COE prices since the first bidding exercise in May 2014, which saw prices plunge by as much as $11k for Cat A, $5k for Cat B and $8k for Cat E.

A few weeks ago, The Straits Times reported that the surge in COE quota will bring down prices. The analysis is based on recent figures provided by the Land Transport Authority, which shows that there will be 11,298 COEs available to car buyers between February and April - 23 percent more than in the previous three months, and more than double the supply for the corresponding period last year.