STAMFORD, Conn. -

Prices were on the way down at the auctions in May — by 0.6 percent month-over-month, according to RVI — but one segment, in particular took a much bigger hit.

According to RVI’s 2015 Q2 Risk Outlook Report, compact car prices suffered in the lanes in May, dropping by 9.6 percent year-over-year, while the market average was only a 3.3-percent dip.

And prices for the segment fell by 2.3 percent from April rates.

And while the market did see a slight drop in residual values in May, smaller vehicles took the biggest falls, while larger and more expensive vehicles performed better in terms of retention.

RVI analysts attribute the significant decline in compact car prices not only to market correction from tax season highs, but also lower gas prices and an improving economic climate, both of which the company contents has weakened demand for used compacts.

Instead, consumers are now turning to larger, more luxurious segments as pockets grow deeper.

And, of course, one cannot look at the current used price environment and not discuss used supply.

RVI reports the used supply of compact cars will continue to grow through May of 2017 before “leveling off,” which will contribute to continuing drops in price for the segment.

In fact, according to RVI, by 2018, compact used prices are expected to drop by 5.7 percent below current levels.

There is one redeeming factor when taking a look at future retention for compact vehicles — rising gas prices, which often turn consumers toward smaller, more fuel-efficient vehicles. But it might not be enough to turn the tides.

“Increasing gas prices will have a positive effect on residual values in the compact car segment. However, the increase of used vehicle supply in the segment along with rising incentives will lead to a decrease in used compact car prices,” RVI analysts said.

Taking a look at the RVI Used Vehicle Price Index, predictions show smaller segments will feel the pressure of the aforementioned factors come end of year.

The compact car segment is expected to end the year with prices down 6.9 percent from 2014 levels. And the subcompacts are expected to be behind 2014 levels by 7.4 percent.

The small sedan segment is also expected to take a hit, with rates predicted to end the year 5.3 percent below 2014 levels.

It seems as used supply expands, and consumers begin the feel the impact of an improving economy and predicted wage increases, the economy car might be giving up the limelight to some more expensive models.