With the exception of motorcycles, certificate of entitlement (COE) prices for other vehicles ended higher as a smaller quota and a longer bidding period amplified upward pressure.

At the end of the latest tender at 4pm yesterday, the COE premium for cars up to 1,600cc and 130bhp finished at $37,766 - 5.8 per cent higher than three weeks ago. COE prices for cars above 1,600cc or 130bhp closed 7 per cent higher at $41,510.

Prices of the Open COEs, which can be used for any vehicle type except motorcycles but which end up mostly for bigger cars, also closed 7 per cent higher at $40,790.

This represents the third consecutive round of increases, sending big car premiums across the $40,000-mark for the first time since November last year. The premium for smaller cars is now at its highest since May 2018.

Despite widespread news of businesses reeling from the coronavirus outbreak, commercial vehicle COE prices finished 6.6 per cent higher at $26,644 - its highest level since August last month.

The COE price for motorcycles closed 0.4 per cent lower at $7,399.

There was a three-week gap between the previous tender and the latest one, instead of the usual two weeks. This gave motor dealers more time to collect bookings.

Industry players point to aggressive promotions by BMW agent Performance Motors as another factor for the premium rises. The firm is said to have collected more than 500 orders last month, with prices of its 1 and 2-series models close to Japanese prices.

Diversified motor group Prime chairman Neo Nam Heng said: "Globally, car sales have been down because of the pandemic. Dealers here are clearing stock, with the support of their principals."

Other motor traders said aggressive financing schemes are also fuelling the hike in COE prices - now at 25 per cent to 35 per cent higher than they were before the circuit breaker.

Inflated invoices, zero down payment and separate loans to overcome the 70 per cent cap on borrowings are some of the schemes enticing buyers to pay higher prices.

Dealers said higher prices translate to fatter margins, which in turn fuel COE bids.

Mr Neo expects pressure to ease after November, when more cars are deregistered and unused COEs return to the system.

Currently, the August-October quota is almost 30 per cent smaller than the previous quota. Christopher Tan