Sunday, October 18, 2015
Cabbies are Starting to Default on Medallion Loans; The Uber Effect?
According to data from the Hackney Carriage Unit of the Boston Police Department, the last four medallions sold in the city went through forced sales after the banks that held mortgages on them foreclosed on the owners who were unable to earn enough to pay their loan, reports Commonwealth Magazine.
Voluntary sales of medallions are almost non-existent in Boston, as the ride-sharing services such as Uber, Lyft, and others have emerged, causing medallion prices to plummet.
In the first four months of this year, there were 10 sales of Boston taxi medallions, one of which was sold at a foreclosure auction. There were no sales after that until late August when a medallion was auctioned off at foreclosure for $310,000, less than half the average price of $666,547 the medallions fetched on the open market just last year.