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It's not quite the whole story. Medallions used to be almost free, which is why the waitlist was 10 years. They started charging 250k, but you can give them b
by Multiplayer 11y ago
It's not quite the whole story. Medallions used to be almost free, which is why the waitlist was 10 years. They started charging 250k, but you can give them back for 200k.
From the MTA site:
By capping the sale price of medallions, the MTA insulates medallion holders from market fluctuations, either up or down. When drivers want to resell, the price is what they paid, minus a 5 percent transfer fee. The agency said it is unlikely to cut the price. For those cabbies who paid nearly nothing for their medallions, the new sales system is an even better deal; they receive $200,000 when they surrender it for resale."
- Scoundreller 11y ago> For those cabbies who paid nearly nothing for their medallions... I'd argue they did pay for them, they worked for below-average wages for 10 years in the hopes of a payoff. Long-term drivers tend to see getting a medallion as a retirement plan.
- Scoundreller 11y agoNot understanding the downvotes: Since cab drivers are bidding against each other for a medallion-car, if they bid more to get a car that shift/day/week, they earn less. If, after 10 years of driving a cab, one could get a $250k wind-fall, one would be willing to earn less during those 10 years than if the wind-fall did not exist.
- smsm42 11y ago> Medallions used to be almost free, which is why the waitlist was 10 years. I imagine the waitlist was 10 years not because medallions were cheap, but because there wasn't enough of them issued to satisfy the demand.