As analysts predict that expanding off-lease volume will start pushing downward on used-car prices at a more rapid pace in the second half of the year, auction prices are expected to continue falling this week.

According to NADA AuctionNet data, wholesale prices are expected to drop by an average of 0.5 percent or $75.

David Paris, automotive analysts at NADA Used Car Guide, told Auto Remarketing price losses are expected to be moderate this week.

Although trucks have seen stronger price retention on average this year, the truck segments and midsize vans, interestingly enough, are expected to lead price declines this week.

Each of these segments are predicted to see price drops of 0.8 percent.

The compact cars, compact utilities, luxury cars and midsize utilities are expected to follow closely behind with average drops of 0.7 percent each.

And even though gas prices remain high — sitting at $3.64 per gallon this week, according to the Energy Information Administration — compact car rates are not seeing a boost in price retention.  

In fact, there is only one segment predicted to see prices rise this week: large SUVs, which should see a 0.1-percent or $25 increase, said Paris.

Smaller declines are expected in all other segments.

Analysts are predicting these price declines will continue through the year as used supply continues to expand.

Manheim chief economist Tom Webb said in a recent conference call that although off-lease volume grew at a steady pace at auction so far in 2014, Manheim expects this rate to pick up even more during the second half of the year.

“They (off-lease volumes) are continuing to grow — we expected the increases in the back half of this year would be more than the first half, and that is the case,” said Webb, chief economist at Manheim Consulting. “Certainly the off-lease volume is tracking along with expectations. The percentage of those that end up in a traditional auction process is pretty much in line with expectations, as well.”

For more on predicted off-lease trends for the second half of the year, see the following Auto Remarketing story:

Off-Lease Volume to Get Boost in Second Half

Four- and two-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles  up to five 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.