Through two months of the year, wholesale auction sales of used vehicles up to 8 years in age are down 15% year-over-year, with most of that softening happening in the premium segment.

That’s according to the latest Wholesale Market Update from J.D. Power Valuation Services, which said there was a combined total of approximately 594,000 of these sales in January and February.

In the first two months of 2021, auction sales volume was at 695,000.

Premium segment volumes have declined 39%, with 69,000 units of vehicles 8 years old and newer moving through the lanes. Mass market sales are off 10% at 525,000 units, according to J.D. Power.

In February, the market showed some progress from January, though.

J.D. Power estimates there were 284,000 wholesale auction sales last month, up 25% from 227,000 units in January. Still, that’s down 16% year-over-year.

Mass market volume came in at 251,000 for the month, up 30% month-over-month and down 11% year-over-year. Premium volume was at 32,000 in February, down 4% month-over-month and down 41% year-over-year.

“Competition in the wholesale marketplace remains fierce,” J.D. Power said in its analysis. “Traditional dealers continue to compete against newer entrants, as well as rental vehicle companies coming to bid and buy vehicles for their portfolios.”

The company is anticipating continued used-car supply tightening for some time, with it “ultimately bottoming out in 2024, which will help support used prices.”