The certificate of entitlement (COE) prices for cars rebounded strongly yesterday.

COE prices for cars up to 1,600cc (Category A) doubled to reach $17,999, a 29-month high.

The COE for cars above 1,600cc (Category B) ended $2,190 or 13.7% higher at $18,200.

Open category COEs (Category E), which can be used for all vehicle  classes, climbed $2,021 or 11.7% higher to close at $19,323.

COE premiums for commercial vehicles (Category C) increased by $2,649 or 38.4% to end at $9,539.

Motorcycle COEs were the only category to buck the trend, falling $108 to $1,081.

The dramatic rebound could possibly be due to motor traders submitting higher bids in anticipation of fewer COEs on offer, because fewer cars than expected were scrapped in the first half of the year. COE supply is determined largely by the number of vehicles scrapped.

The Land Transport Authority is due to announce the number of COEs to be offered for the October 2007-March 2008 period later this month.

The sharp rise in COE prices is already resulting in higher car prices, with the Straits Times reporting prices at the Toyota showroom already $2,000 to $6,500 higher than they were two weeks ago.