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!