Used Small Tractor Pricing Index Shows Unusual Jump in August

According to the September Used Equipment Trends report from Iron Solutions, the under 100 horsepower used tractor price index rose an unprecedented 5 points in August.

The report stated the following:

We have come to expect choppiness in the index value of the small tractor (utility and compact) segment. But even here, movement of 5 points is unprecedented. Data from August pushed this number to 77% a full 5.1 points higher than the previous all-time-high of 71.9% just a month ago. 

Another unusual observation is that, typically, spikes in this segment are in the Fall and Spring. To see a spike in August is unusual. The cumulative increase in the last 3 months is just shy of 10 percentage points. 

The report also said this increase is counterintuitive to the 0% financing on new equipment seen in the under 100 horsepower tractor segment.

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