The Cat A COE price dropped to $25k again following the second round of bidding for November 2018.
Other certificate of entitlement (COE) premiums also closed mostly lower yesterday (November 21).
The largest drop was for Cat A COE, for cars up to 1600cc and 130bhp, with prices falling 11.3 percent from $28,199 to $25,000.
Cat A COE last hit $25,000 – its lowest since 2010 – in August.
The next largest fall was for commercial vehicles, where the COE price dropped 6.8 percent, from $29,501 to $27,509.
The COE premium for cars above 1600cc or 130bhp closed at $31,101, down from $32,302 previously.
For the open category COE, which can be used for any vehicle type except motorcycles, but is mostly used for bigger cars, the price closed at $30,959.
This was a 3.3 percent drop from $32,000 in the last round of bidding .
Only the COE price for motorcycles closed higher at $2989, from $2509 previously, reversing the downward trend in recent months.
Observers point to a number of factors behind the downward trend for car COEs.
“The economic outlook is poor and interest rates are going up,” said Mr Neo Nam Heng, chairman of diversified motor group Prime, adding that these factors have dampened the demand for cars.
The higher quota of COEs for smaller cars compared with the previous quarter has also helped drive the price for the category down, said Mr Nicholas Wong, general manager of Honda agent Kah Motor.
Also playing an “important role” in dampening demand is the new vehicular emissions scheme introduced in July, said Mr Neo.
The Straits Times reported in September that only about 15 percent of new cars registered qualified for rebates under the new scheme, which hands out tax rebates or surcharges based on a vehicle’s emissions.
“Popular cars that got a $10,000 rebate under the previous scheme now have a $10,000 surcharge,” said Mr Neo.