The
January 2019 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 fell from December. In January,
there were 94 unrestricted taxi medallion sales.
2. 79 of the 94 sales
were foreclosure sales (84%), which means that the medallion owner defaulted
on the bank loan and the banks were foreclosing to obtain possession of the
medallion. One sale was an estate sale. 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).
3. The large volume of foreclosure sales (approximately 84%)
is in our opinion evidence of the continued weakness in the taxi medallion
market.
4. The 14 regular sales for consideration ranged from a low
of $135,000 (one medallion) to $175,000 (one medallion), $210,000 (one
medallion), $228,000 (one medallion), $340,000 (two medallions), $350,000 (six medallions)
and a high of $373,337.02 (two medallions) for a median value of $350,000, a 106% increase from December’s median
value of $170,000.
5. The fact that 84% of all transfers in January 2019 were foreclosure sales shows continued weakness in the taxi medallion
market and no sign of a correction.
6. At Shenwick &
Associates we believe that the value of a medallion is approximately $162,000+
and dropping.
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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