In the first COE bidding exercise for February, COE premiums across all three car categories fell, with prices dipping under the $50,000 mark.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, dropped by $2,488 (4.89 percent) to end the bidding tender at $48,401. 

Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, went down by $4,598 (8.71 percent) and ended at $48,209. 

In Cat E, the open category, prices also fell by $4,044 (7.69 percent), with premiums closing at $48,556. 

The drop in COE prices can be attributed to the increase in quota for all categories in February, with the COE supply increasing by 8.9 percent in the February to April period. In light of recent reports of a slowing economy and fewer new jobs created, we would not be surprised if demand for new cars remains relatively flat, which may see COE prices fall further in the coming months.