The
August 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 from July. In August, there
were 52 taxi medallion sales.
2. 37 of the 52 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 another transfer was from an individual to an LLC 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
71%) is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The 11 regular sales for consideration ranged from a low
of $150,000 (one medallion), $160,000 (one medallion), $170,000 (one medallion),
$172,500 (two medallions), $175,000 (two medallions), $180,000 (one medallion),
$182,300 (one medallion), $185,000 (one medallion) and a high of $200,000 (one medallion).
5. Accordingly, the median
value of a medallion in August was $175,000, the same as in July.
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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