The
October 2018 New York City Taxi & Limousine Commission (TLC) sales results
have been released to the public. And as is our practice, provided below are
Jim Shenwick’s comments about those sales results.
1. The volume of transfers rose dramatically from September.
In October, there were 106 unrestricted taxi medallion sales.
2. However, 99 of the 106 sales were foreclosure sales,
which means that the medallion owner defaulted on the bank loan and the banks
were foreclosing to obtain possession of the medallion. We disregard these
transfers in our analysis of the data, because we believe that they are
outliers and not indicative of the true value of the medallion, which is a sale
between a buyer and a seller under no pressure to sell (fair market value). One transfer was an estate sale for no
consideration and another transfer was from an individual to an LLC for no
consideration, which also does not reflect fair market value and which we have
also excluded from our analysis.
3. The large volume of foreclosure sales (approximately 94%)
is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The five regular sales for consideration ranged from a
low of $150,000 (one medallion), $160,000 (three medallions) and a high of $175,000
(one medallion).
5. Accordingly, the median
value of a medallion in October was $160,000, down 8.5% from $175,000 in
September.
In Jim Shenwick’s opinion, the
new NYC law restricting the number of Uber, Via and Lyft licenses
does not seem to have yet increased the value of taxi medallions.
Please continue to read our blog to see what happens to
medallion pricing in the future. Any individuals or businesses with questions
about taxi medallion valuations or workouts should contact Jim Shenwick at (212)
541-6224 or via email at jshenwick@gmail.com.
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