Used vehicle deprecation in May accelerated at a quick pace after tax season came to a close, but price drops in the lanes are expected to slow this month.

Last month saw depreciation ramp up to the fastest rate seen in more than six months. That’s according to the latest edition of Guidelines from NADA Used Car Guide, which stated prices of vehicles up to 8 years in age fell by 3.2 percent from April rates.

This is the biggest drop on record since last October, when prices fell by 3.6 percent in the lanes.

NADA UCG analysts tie the accelerated depreciation rates to two factors: Weak demand for compact and mid-size cars and two full weekends of Memorial Day new-vehicle promotions.

Last month’s decline was also the worst performance for May since 1995, and pushed NADA Used Car Guide’s seasonally-adjusted used vehicle price index to 123.8, down 0.5 percent from April and 2 percent lower than last May 2014.

Tax season brought with it the usual interest in smaller, more affordable vehicles, and now these segments are feeling the impact of market corrections.

NADA UCG also reported the subcompact, compact and mid-size car segments are also feeling the impact of new market promotions and incentives, as well as the fact that many consumers are turning to the truck and utility vehicles.

Consequently, subcompact, compact and mid-size car prices fell by an average of 3.7 percent in May.

And compact utilities saw a significant decline in May, as well, with prices dropping off by 3.4 percent.

And of course, these declines are also tied to growing supply. Year-over-year, auction volume was 7 percent higher in May than it was last year and is also up 7 percent year-to-date.

Luxury, mid-size and large car prices fell off by 3 percent in May, while midsize utility vehicle and van prices slid at a softer pace of 2.4 percent.

Once again, large pickups and SUV prices remained strong, with prices only dropping by about 1 percent a piece last month.

In fact, on an annual basis, NADA UCG pointed out large pickups continue to outperform the market. According to NADA data, through the first five months of the year, prices for pickups were 7.1 percent higher in May than they were during the same period last year.

And even though summer normally brings with it lower prices at auction, NADA UCG predicted depreciation to slow somewhat in June compared to the higher rate recorded in May.

NADA UCG expects used prices to drop by an average of 2 to 2.5 percent in June.

Cars are once again expected to see higher rates of depreciation than trucks.

Subcompact, compact, and mid-size car prices are expected to fall by roughly 2.5 percent, while mid-size van and utility losses should be more mild.

Large pickups and SUVs are expected to see price drops of less than 2 percent, and luxury mid-size and large car depreciation is predicted to come in at about 2.5 percent.