The COE premiums for Cat A cars drop in October's latest bidding exercise, while premiums for more powerful and luxurious vehicles go up.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, went down by $516 (one percent) to end the bidding tender at $50,991.

Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, increased by $3,409 (6.4 percent) and closed at $56,410.

In Cat E, the open category, prices increased by $2,140 (3.9 percent), with premiums closing at $56,340.

The increase in Cat B and E premiums is likely due to the recent launch of more premium cars like the Mercedes-Benz CLA and Mercedes-Benz E-Class; and dealers are aiming to secure COEs before November, when the COE quota is expected to shrink further. Premiums across all categories are expected to increase with the next COE bidding in three weeks' time, along with shrinking quotas.