The
November 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 again from October. In November,
there were 154 unrestricted taxi medallion sales.
2. However, almost all
those transfers were bankruptcy and foreclosure transfers!
3. 50 of the 154 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).
4. And in an
unprecedented development, 93 of the sales (60%) were sales of medallions in
bankruptcy proceedings. As these
sales are constrained by debtors’ and trustees’ need to liquidate distressed
assets, we also disregard these transfers in our analysis.
5. The large volume of foreclosure and bankruptcy sales (approximately
93%) is in our opinion evidence of the continued weakness in the taxi medallion
market.
6. The eleven regular sales for consideration ranged from a
low of $140,000 (one medallion) to $175,000 (two medallions), $180,000 (seven medallions)
and a high of $320,000 (one medallion).
7. The fact that 93% of all transfers in November
2018 were either the result of bankruptcy filings or foreclosure sales shows
continued weakness in the taxi medallion market and no sign of a correction.
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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