STAMFORD, Conn. -

Used-car prices began falling as the year began, bringing a taste of what is expected to be the annual trend after dealers wade through tax season price hikes at auction.

According to the latest RVI Market Update, wholesale prices for 2- to 5-year-old vehicles fell by 4.1 percent in January when compared to December.

That said, prices were still up 0.9 percent year-over-year.

And the declines were almost universal, as only two segments saw prices increases this past month, according to the report.

Small SUVs and sports cars were the only segments to see price increases when compared with December rates, with climbs of 1 percent and 0.1 percent, respectively.  

Even amid winter weather that swept across most of the country in January, prices for full-size SUVs saw the biggest drop in price last month, falling by 8.6 percent from December and 1.5 percent year-over-year.

Small sedans, both luxury (-6.8 percent) and non-luxury (-7.3 percent), saw higher-than-market-average declines when compared to December, as well.

Interestingly, according to the report, new-vehicle prices are on the way down, as well. Transaction prices fell by 0.3 percent from December to January. Prices have fallen a total of 0.5 percent for these new rides since September.

But before we see prices fall much more, tax season will most likely bring rates back up, according to Black Book editorial director Ricky Beggs.

“Tax season has appeared,” said Beggs this week. But it’s not only the arrival of W-2s and tax returns that indicates such an arrival — the proof is in the auction lanes, as well.

Beggs said the season “finally raised its head this past week, causing more aggressive bidding for some vehicles in some markets.”

In the latest “Beggs on the Used Car Market” video report, the Black Book editorial director said reports from buyers and sellers in the lanes last week focused on “springtime optimism” from the Nevada market, to “steady”, “strong”, and “the market is improving” across the U.S.