CAR certificate of entitlement (COE) prices climbed at the close of the latest tender yesterday.

This was fuelled partly by sporadic sales promotions over the weekend that drew buyers to showrooms.

The premium for cars up to 1,600cc, which affects the majority of buyers, climbed 16.7 per cent to end at a 4-1/2 year high of $18,899.

The COE price for cars above 1,600cc recovered from last fortnight's dip to close 7.7 per cent higher at $19,510. The COE price for motorcycles was up 3.2 per cent to $931.

The COE premiums for two categories which had breached the $20,000 mark saw their price tumble back down.

The Open category, which can be used for any vehicle type and a favourite of speculators, fell by 6.6 per cent to finish at $19,901. The COE price for commercial vehicles ended 16.5 per cent lower at $18,110.

Motor traders said that several car dealerships were restrained in raising prices in recent weeks despite rising premiums. In fact, some had cut prices.

Volkswagen Singapore launched a clearance sale for the VW Polo to make way for the new model. It cleared all the 20 or so cars last weekend.

Kia priced its new two-door Koup at about $60,000 and buyers snapped up 100 last weekend, bringing bookings in hand to more than 200 now.

Cycle & Carriage Kia senior manager Chin Kee Min said he was 'pleasantly surprised'.

The opposite was true for the commercial vehicle segment.

Mr Steve Poh, general manager of Wearnes Automotive's Renault division, said there were just no takers with the COE premium at over $21,000.

'I think the threshold is about $18,000,' he said. 'If it goes any higher than that, people stay away. Some even say they would rather buy a car.'

Motor traders said there are still many Open and commercial vehicle COEs - both of which are transferable - in the market. Hence, speculators who trade in these took a back seat this time round.

Yesterday's results, however, meant car prices would rise. Nissan agent Tan Chong said it is likely to increase prices by $1,000 to $2,000.