Tuesday, October 11, 2016

Chicago Taxi Medallion Prices in Q3 Are Down 75 Percent from Two Years Ago

The City of Chicago reported that the average taxi medallion prices for the third quarter of 2016 was $75,250.

The median taxi medallion price was $67,500.

There were 12 transactions during the quarter. Taxi medallion prices ranged between $38,500 and $202,500. The 202,500 appears to be an outlier.

In the third quarter of 2014, taxi medallion prices in Chicago ranged between $250,000 and $357,000 with an average price of $304,875.

This would indicate that taxi medallion prices on average are down almost 75 percent from two years ago.

Below are the taxi medallion transfers for Chicago closed during the third quarter of 2016.

Moreover, it is unlikely that medallion values in Chicago will improve after a recent decision by the 7th Circuit Court of Appeals. Judge Richard Posner rejected the taxi companies' arguments regarding ridesharing services, such as Uber, as anti-competitive. Read the decision.

This indicates that credit unions, which financed taxi medallion loans in Chicago, will face significant impairment charges on these loans.

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