Auction volume was up nearly 5 percent in August, according to the National Auto Auction Association, continuing what’s been a solid 2014 so far and likely the third straight year of increased volumes — with more growth on the horizon.

The association’s latest Economic Dashboard — prepared by NAAA economist Ira Silver — indicated that auction volume was up 4.8 percent in August against comparable weeks of 2013. Year-to-date, it’s up 3.9 percent.

In a presentation from Silver late last month titled “The First Half and Beyond,” NAAA shared data from its 2013 Annual Review that called for auction volume of 8.6 million units in 2014.

That would be up 5 percent from 2013, when auction volume rose 4.2 percent and reached 8.2 million units. In 2015, NAAA is calling for auction volume of 9.1 million vehicles, a 6-percent gain.

“Auction volume will increase this year and next,” the summary section to Silver’s report indicates. “And probably further on.”

These gains in auction volume are being pushed by stronger new-car retail volumes, according to the report, which have been on an upward bump since 2010. In August, they climbed 9.9 percent, the Economic Dashboard indicates, and have improved 5.1 percent year-to-date.

Although the used-car retail market struggled a bit last month  — sales were down 6.5 percent —  NAAA is projecting there will be 42 million used sales this year (even with last year) and climb to 43 million next year.

This intersection of retail sales, auction volumes and supply trends — along with used-car prices — was something that ADESA's Tom Kontos addressed in his monthly report released this week. 

In the latest “Kontos Kommentary” report, he pointed out the continued sequential slide in wholesale prices, while also noting that August marked the first time used prices dropped on a year-over-year basis since January. 

Overall, they were off 1.6 percent month-over-month and down 0.4 percent year-over-year, according to the ADESA data.

“This should come as no surprise, as this has been an outcome we have anticipated for quite some time based primarily on our predicted growth in off-lease volume,” said Kontos, who is the executive vice president and chief economist for ADESA Analytical Services.

“Retail used-vehicle sales, especially for certified pre-owned units, have actually been providing a demand-side extension to the strong sellers market that consignors have generally enjoyed since late 2009,” he added. “But with the focus on new-vehicle sales in the current retail automotive market, those used-vehicle sales have had a temporary lull (although not for CPO units).

“Given an improving economy and employment growth, retail used-vehicle sales should resume full bore in coming months, especially considering the high trade-in volume the strong new-vehicle sales are generating. Nevertheless, used-vehicle prices should continue to trend down as supply outpaces demand.”