In Shanghai auction prices of car license plates have hit a new high for the year. The rise is all the more dramatic with the year's record low being hit just a few short months ago in September.

The last car plate auction of the year has drawn nineteen thousand bidders. And competition has been fierce, with the lowest price set at 36 thousand 9 hundred yuan. And even at that level, the price has exceeded expectations.

One car plate bidder said "I got it a 37 thousand yuan. That's more than my prediction of 35 thousand."

One car plate bidder said "I have been bidding for four months. The first time the price was 27 thousand yuan, however I failed to get it because I was not fast enough on the Internet. It was a pity. Now it costs 10 thousand yuan more. It gets higher every month."

Since hitting 27 thousand 2 hundred yuan in September, the price has been climbing. Analysts say the main reason is next year's hike in purchase tax for low-emission vehicles, from five to 7.5 percent.

One salesman said "Buyers do not want to pay the extra 2.5 percentage points in purchase tax, and are rushing to sign their deals before the end of the year."

One car plate bidder said "If I buy the car next year, I have to pay 3,000 yuan more in tax."

Analysts say limited supplies of car plates are also contributing to the high price. In December, Shanghai released eight thousand plates, unchanged from November.

Li Xianjin, Second-hand car agent said "I think it depends on the auction volume. If more plates are issued, the price will go down. "

Industry insiders expect prices of license plates to remain high next month as demand is still strong. The price may drop slightly after the spring festival when the car market enters its traditional off-season.