The
June 2018 New York City Taxi & Limousine Commission (TLC) sales results
have been released to the public. And as is our practice, provided below
are James Shenwick’s comments about those sales results.
1. The volume of transfers rose from May. In June, there
were 41 taxi medallion sales.
2. 36 of the 41 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). Another transfer was due to a partnership
split, which also does not reflect fair market value and which we have also
excluded from our analysis.
3. However the large volume of foreclosure sales (approximately
88%) is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The four regular sales ranged from a low of $172,000 (one
medallion), another at $175,000, another at $180,000 and a high of $200,000.
5. Accordingly, the median
value of a medallion in June was $177,500.
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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