IRVINE, Calif. -

Kelley Blue Book reported last week that used auction values reached a three-year low in May and also highlighted a few interesting trends within the segments, some based on seasonality with high incentives playing a role, as well.

First up, highline vehicles retained a bit of price strength in the lanes this past month.

Auction values of 1- to 3-year old luxury vehicles fell nearly 1 percent in May, “performing better than the overall market average, which fell 1.8 percent,” KBB reported.  

In fact, the luxury full-size SUV/crossover segment was the only segment to see price increases in May. KBB explained this rise was due to the Buick Enclave’s price hike of 2.2 percent and the Infiniti QX56 (up 1.1 percent).

“The QX56 has been much better received in the market since its bold redesign for the 2011 model year, while the Enclave has proven to be an affordable, worthy competitor in this space,” KBB officials said.

What’s in store this month for the highline side of the market? Well, let’s just say the scenario will be quite a bit different from May’s outlook.

“Looking forward, Kelley Blue Book expects luxury values to decline more steeply in June, with approximate average depreciation of 1.5 percent, due to seasonality and an increasing supply of three-year lease returns coming back to the market,” the company predicted.

Chrysler & Volvo Buck Trend

And two brands, in particular, are beating out the declining trend. Chrysler Group and Volvo — the only two manufacturers whose auction values are up on a year-over-year basis (as of the end of May).

KBB spotlighted Chrysler, noting the average auction value of $16,750 from Chrysler Group is $258 higher than last year and more than $1,000 higher than it was in 2011 (for 1-to 3-year-old models).

Apparently, the Jeep brand is retaining value especially well, with the Wrangler and Grand Cherokee helping to push Jeep’s retained value to 70.9 percent MSRP, “far exceeding the market average of 63.4 percent,” KBB said.

Downward Trends

On the other hand, mid-size sedans fullsize pickup trucks both contributed to the overall average decline in used auction values this past month.

First up, year-over-year, mid-size sedans were down 6.3 percent in April.

And as of mid-May, the segment auction prices were down 6.2 percent.

Why so affordable in the lanes?

“Kelley Blue Book field analysts have mentioned that the early downward trend for mid-size sedans could be a result of lease returns flooding the auctions,” said Alec Gutierrez, who is the senior market analyst of automotive insights at KBB. “There is a high volume of Nissan Altima, Honda Accord and Toyota Camry lease returns.”

The story for full-size sedans wasn’t much different, as this segment’s wholesale prices were down 4.73 percent in April, and 3.91 percent as of mid-May.

Explaning the reasons behind this dip, Gutierrez said, “Overall, the peak for full-size vehicles occurred early in April this year, and the values have been on a downward slope ever since.

“The downward trend could be a result of mid-size sedans taking away some of the market share from full-size sedans, since they are easily cross-shopped,” he added.

Though some of the truck segments have experience price strength as of late as housing conctruction continues to increase, year-over-year, the average auction values for 1- to 3-year-old fullsize pickup trucks are down 1.3 percent (as of the end of May).

“Used pickup values likely are under pressure from heavily incentivized new truck sales and the launch of the new-generation Chevrolet Silverado and GMC Sierra,” KBB explained.

In fact, auction values for full-size trucks have been “gradually decreasing” since the beginning of the year, and year-to-date, this segment’s wholesale prices are down 2.6 percent.

But there is, in fact, one outlier.

According to KBB, Ram pickups have retained the most value year-to-date and in May.

“The redesigned 2013 Ram pickups have been in the market longer than the new Chevrolet Silverado, and used values have had adequate time to adjust to the downward pressure a redesign typically brings,” KBB officials said.

Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.