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Googling found me rates of about 4%-5% for a taxi medallion loan in NYC[1]. For an 800k medallion, that's 30k-40k a year in interest, which should still be givi
by smeyer 12y ago
Googling found me rates of about 4%-5% for a taxi medallion loan in NYC[1]. For an 800k medallion, that's 30k-40k a year in interest, which should still be giving a lot of wiggle room to a competitor not paying for medallions.
[1]https://www.brfcu.org/rates_loans.asp https://www.brfcu.org/rates_loans.asp
- nerfhammer 12y agoThe most recent announced average rate at the largest medallion loan bank is 4.06%: http://www.medallionfinancial.com/news_release_14-11-03.htm http://www.medallionfinancial.com/news_release_14-11-03.htm The historical average appreciation rate of medallions is 14%: http://www.aei.org/publication/chart-of-the-day-nyc-taxi-medallion-prices/ http://www.aei.org/publication/chart-of-the-day-nyc-taxi-med... The differential between the loan rates and appreciation yields may be about as much as you make using it to actually drive the taxi: http://blogs.reuters.com/felix-salmon/2011/10/21/why-taxi-medallions-cost-1-million/ http://blogs.reuters.com/felix-salmon/2011/10/21/why-taxi-me...