NEW YORK CITY–Just how far have the value of taxi medallions declined? Credit unions, along with the broader market, will get an answer in mid-January when Aspire FCU auctions of 14 medallions from its portfolio.
Thomas O’Shea, president of Aspire FCU, told Crain’s New York Business that one or more of the assets will have an opening price of $150,000, with the hope being the low price will draw the attention of bidders and drum up interest in the sale.
According to Crain’s, the last auction that had competitive bidding was for a package of 46 bought by a hedge fund as part of a bankruptcy settlement; medallions went for $186,000 apiece, but individual sales might have pushed the price higher. Medallions have also recently changed hands in what are believed to be cash transactions for as little as $150,000 and as much as $400,000, according to the Taxi and Limousine Commission, Crain’s reported.
O'Shea was quoted by Crain’s as saying Aspire is hoping the right price will bring owner-operators back into a market decimated by ride-hailing apps. Prices have declined sharply since 2013, when one medallion was sold for more than $1 million.
Credit unions in New York, Chicago and other markets that specialized in making taxi medallion loans have been hit hard by delinquencies and charge-offs, with several CUs having already been placed into conservatorship by NCUA. As CUToday.info reported here, NCUA board member Rick Metsger recently warned loses by the taxi medallion lenders could translate into losses for the National Credit Union Share Insurance Fund, as well.