It looks like wholesale price drops are beginning to escalate even more in the fourth quarter, with auction rates expected to decline by almost 2 percent this week.

According to NADA’s AuctionNet data, at the industry level, prices in the lanes are predicted to fall by 1.9 percent, or $275, over the course of the week.

All segments are expected to see prices drop, and NADA predicts the compact and midsize car segments will see the most dramatic percentage price declines.  

Compact cars are expected to see prices drop by 2.1 percent, or $200, while the midsize car segment is predicted to see a 1.1-percent ($125) decline.

“Fuel prices continue to decline, which never seems to help fuel-efficient segments,” said David Paris, automotive analyst are NADA.

According to Energy Information Administration released Monday, the average price of regular grade gasoline fell from $3.12 to $3.06 last week.

Interestingly, the trucks are also beginning to see larger price drops in the lanes, after experience stronger-than-average price retention for most of the year.

NADA expects large pickup prices to see a drop of 0.9 percent, or $200, this week.

The strongest price retention is predicated in the midsize utility and midsize van segments, which are each expected to see prices drop by $100 this week.  

Four- and two-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles  up to 5 years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are based on NADA's proprietary used-vehicle value model which includes assumptions for new-vehicle prices, used-vehicle supply, gasoline prices, and other economic factors.