NYC Medallions on Sale – $500k each!

Acclaimed NYC medallions will go on sale this year.  2000 of them.   The city is expecting to raise $1B for these.   Is $500K a medallion unrealistic?  In the past, some medallions have gone for over $1M.  So asking $500K, city argues, is an acceptable expectation.

However, in this economy and inevitable dilution of taxis in NYC , this expectation is being questioned. Furthermore:

  • “Prior auctions came with fare hikes, raising the medallions’ value for potential buyers. This one comes…with no fare increase”
  • This is right “after a change in state law that stripped away one of the industry’s most lucrative perks — the sole right to pick up street hails in all five boroughs.”
  • The “new taxis must also be wheelchair-accessible, and the cost of such a vehicle, roughly $45,000, is nearly double that of a standard cab, about $25,000.”

The sale continues throughout the year.  Stay tuned!

Source: New York Post – City hails ‘$1B’ taxi-medallion sale