The
July 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 fell from June. In July, there
were 36 taxi medallion sales.
2. 22 of the 36 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). Three transfers were estate sales for no
consideration and two transfers were also for no consideration, which also do not
reflect fair market value and which we have also excluded from our analysis.
3. However the large volume of foreclosure sales (approximately
61%) is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The nine regular sales for consideration ranged from a
low of $160,000 (two medallions), $170,000 (two medallions), $175,000 (two
medallions), $200,000 (one medallion) and an unusual high of $500,000 (two
medallions).
5. Accordingly, the median
value of a medallion in July was $175,000.
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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