As used supply expands, wholesale prices continue to slide. In fact, rates in the lanes hit a two-year low in the third quarter.

That’s according to Kelley Blue Book’s Q3 Blue Book Market Report, which showed auction values for 1- to 3-year-old vehicles fell by an average of $850 or 4.3 percent in the third quarter.

And average values were lower than what was seen in both Q3 2014 and Q3 2013. Specifically, rates averaged $38 lower than the third quarter of 2014, and $349 lower than prices during the same period of 2013.

And though rates have dropped to more normal levels after prices skyrocketed in light of tight supply due to the Great Recession, KBB analysts reassured the industry the declines are nothing to be worried about.

“While auction values are maintaining a two-year low, we’re not seeing anything out of the ordinary from a valuation perspective,” said Sean Foyil, analyst for Kelley Blue Book. “Auction volume has consistently been up this year when compared to previous years, and that means more supply in the lanes, which can ultimately cause values to soften.

“Additionally, as we see each year, auction values typically follow a seasonal pattern where they tend to maintain a steady decline throughout the third quarter and into the end of the fourth quarter.”

Taking a look at price movement by segment, the overall average segment decline over Q3 was 4.7 percent, but Foyil shared, “Both the midsize and full-size pickup truck segments significantly outperformed the used-car market in the third quarter.”

For much of 2015, this has been the case, and Q3 was no exception. Midsize trucks only saw prices fall by 1 percent last quarter, while full-size truck rates dropped by just 1.7 percent.

“This is in line with what we have seen throughout the year, due to a lower supply and increased demand for mid-size and full-size trucks,” said Foyil.

Among the midsize trucks, the Nissan Frontier and Toyota Tacoma came out on top, according to KBB data, with prices falling by 1 percent and 0.7 percent during Q3, respectively.

And for full-size trucks, the Dodge Ram 3500, GMC Sierra 1500 and the Chevrolet Silverado 2500 were the best performers, with rates spiking by 2.3 percent, 1.7 percent and 1.7 percent, respectively.

The SUV and crossover segments — except for compact SUV/crossovers, which fell by 4.8 percent — followed relatively closely behind the truck segments with price declines ranging from 3.1 percent to 4 percent.

The sports car segment took the biggest hit in Q3, with prices falling by 8.9 percent as summer came to an end. The subcompact cars also took a plunge, with rates falling by 7.2 percent in Q3.

And according to the latest Black Book Market Insights report, auction value declines are not slowing down.

In fact, last week, cars and trucks both experienced the largest declines so far this year. Car prices dropped by an average of 0.91 percent or $99, while trucks fell by 0.69 percent or $108.

The compact car and entry midsize car segments saw the biggest declines with both segments seeing a 1.38-percent drop. The full-size segment performed the best among the cars, with a drop of just 0.20 percent or $18.

For trucks, the compact pickup (zero percent change) and compact SUV (0.01-percent decline) segments saw prices hold steady. The minivan cargo segment pulled average prices down a bit, as it posted a 2-percent ($102) drop last week.

Comments in the lanes illustrated the downward trends in auction price, as Black Book editors overheard an auction attendee from Pennsylvania note, “Prices were low here today, dealers selling at almost any price to reduce inventory.”