The April 2019 New York City Taxi & Limousine Commission (TLC) sales resultshave 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 March. In April, there
were 75 unrestricted taxi medallion sales.
2. 57 of the 75 sales
were foreclosure sales (76%), which means that the medallion owner defaulted
on the bank loan and the banks were foreclosing to obtain possession of the
medallion. Four sales were estate sales for no consideration. 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 76%)
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 $125,000 (one medallion) to a high of $230,000 (one medallion), with a
median sales value of $170,000.
5. The fact that 76% of all transfers in April 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 $160,000
and the value of medallions continues to weaken.
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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