The
September 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 August. In August,
there were 54 unrestricted taxi medallion sales.
2. 44 of the 54 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 the dissolution of a partnership,
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
81%) is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The eight regular sales for consideration ranged from a
low of $160,000 (three medallions), $175,000 (two medallions), $180,000 (one medallion)
and a high of $200,000 (two medallions).
5. Accordingly, the median
value of a medallion in September was $175,000, the same as in August.
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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