The COE price for cars up to 1600cc and 130bhp closed 9.5 percent lower at $42,339. The premium for cars above 1600cc or 130bhp finished 6.4 percent lower at $53,711.
The price for Open COE, which can be used for any vehicle type except motorcycles, ended 5.5 percent lower at $54,334.
Commercial vehicle COE premium posted the biggest drop of 27.2 percent to finish at a six-month low of $42,000.
Motor traders said the correction had to do with the clearing of an order backlog built up in the last couple of months.
News of the Government reducing the annual allowable vehicle growth rate from 0.25 percent to zero next year triggered panic buying among motorists last month.
In the commercial vehicle segment, the rush to clear models which do not comply with Euro 6 diesel standards – which will kick in from next month – had also pushed up the premium for buses, trucks and vans.
“The bubble has finally burst,” said Mr Neo Nam Heng, chairman of diversified motor group Prime. “The backlog of all these vehicles has been cleared.
“COE (prices) should fall further in January and February.”
Mr Nicholas Wong, general manager of Honda agent Kah Motor, said the price correction “is good news”. “Fresh orders have been very weak in the last couple of rounds,” he said.
Meanwhile, the motorbike COE premium rose by 9.3 percent to hit an eight-month high of $6552.
Singapore Motorcycle Trade Association honorary general secretary Norman Lee attributed this to a rush to clear models which will not meet the Euro 4 standard for two-wheelers which is phasing in from January.