The year-over-year decline in auction volume during the third quarter was roughly even with the drop-off a quarter earlier, according to the National Auto Auction Association, which said volumes dipped a little more than 10 percent compared to the year-ago period.

Specifically, there was a 10.1-percent year-over-year decline in auction volume during the third quarter, compared to the 10.2-percent drop during the second quarter.

“In the third quarter, the slowdown in new sales limited dealer consignment volume, which increased at the lowest rate in a year. Lesser declines in manufacturer/factory and repossessions helped keep the total decline about even with the second quarter,” NAAA economist Ira Silver explained in the association’s Auction Industry Report.

“Although higher dealer consignment numbers associated with better new sales will help total auction volume, our business will be challenged until towards the end of next year when the drag from past weak new sales lessens,” he added.

NAAA noted that dealer consignment volume was up 6 percent year-over-year, compared to the 10.5-percent gain in the second quarter. Fleet/lease volume declined 25.7 percent from the 2010 period, versus the 26.8-percent dip a quarter earlier.

There was a 30.7-perecent drop in manufacturer/factory volume, which was more moderate than the 40.1-percent dip seen in the second quarter.

Repossessions softened 12.1 percent year-over-year, compared to a 22-percent drop the prior quarter.

“Past large declines in new sales into leases and rental cars are continuing to reduce overall auction volume, with fleet/lease and manufacturer/factory both down sharply in the second quarter,” Silver continued.

“Weak current new/used sales was reflected in the smallest dealer consignment gain in three quarters, while the improved economy reduced repossession volume by over 20 percent for the second quarter in a row,” he added.

Sharing segment details, passenger car volumes were off 11.2 percent, pickups dipped 10.3 percent and vans showed the heftiest drop-off at 12.3 percent. The most moderate decline was in the utility segment, which was down 7.1 percent.

The “utility” name for the category is a result of the National Automobile Dealers Association reclassifying data to combine CUVs and SUVs into one category, Silver noted.

He went on to attribute the drop for passenger cars to Japanese supply problems seen this year, noting that the car segment has been the most susceptible to the shortage.

As for pickups, they “have suffered from the effect of high gas prices and low demand related to the extreme weakness in the residential construction industry,” Silver indicated.

Moving along to pricing data, the third quarter showed a relatively static comparison to the year-ago period, with prices down 0.6 percent. In the second quarter, prices fell 0.2 percent on a year-over-year basis.

Year-to-date, prices are down 0.2 percent and volumes are off 9.3 percent. During full-year 2010, prices climbed 3.5 percent and volumes declined 5.8 percent.

NAAA also provided the following charts: