COE prices tumbled across the board in the latest tender yesterday.

Motor traders said the market returned to its lethargic mood after sporadic sales promotions, held three weeks ago, fizzled out.

The COE premium for cars of up to 1,600cc took the deepest dive, ending 11.4 per cent lower at $16,747.

The premium for cars above 1,600cc fell by 5.7 per cent to end at $18,389.

Open COE, which can be used for any vehicle type but ends up mainly for cars, was 4.5 per cent weaker at $19,000.

Even the COE premium for commercial vehicles, which bore the brunt of a supply cut last month, ended lower. It closed at $16,989, down 6.2 per cent.

The motorcycle premium fell by 3.1 per cent to hit $902.

Observers blame the latest results - with the first across-the-board dips since supply was cut last month - on weaker sales.

Car buyers, used to ultra-low prices in the first half of the year, are shying away from showrooms despite a pick-up in consumer spending elsewhere.

'As recently as Chinese New Year, you could get a Korean sedan for under $40,000. Now the same car is over $50,000,' a dealer said.

Mr Vincent Ng, product manager at Honda agent Kah Motor, said even sales to foreign buyers here have dwindled.

'We saw quite a lot of foreigners coming in last year, but the number has fallen quite a lot,' he said. He added that it will take some time before this group of consumers becomes accustomed to current showroom rates.

New car prices have risen by around $10,000 since the beginning of this year.

Mr Steve Poh, general manager of Wearnes Automotive's Renault division, said the school examinations period may have contributed to the softer market, as parents stay home.

He expects showroom traffic to thin out further during the year-end school holidays as people go abroad for breaks.

In all, the tender drew 3,807 bids, 9.2 per cent fewer than two weeks ago.