Author Topic: Help - Need Advice on Taxi Leasing  (Read 2485 times)

Taxi Son

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Help - Need Advice on Taxi Leasing
« on: March 08, 2017, 11:35:08 AM »
Hi all,

I found this message board and though it might be a good place to get some advice.

My father drove yellow cabs for 30 years and along the way he managed to purchase two medallions. Luckily, those medallions are paid off already. When he retired, he started leasing the two medallions (without cars) to a broker (garage/taxi management, not sure what exactly they are called). My dad passed away a few years ago and we have continued leasing to the same broker since then, with the payments serving as my mom's primary income.

With incomes down across the industry, the payment from the broker has decreased from nearly $7,000/month for two medallions a few years ago to $3,000/month last year. This week, my mother got a letter from the broker saying they were lowering the payment again, bringing it to $2,000/month ($1,000/medallion). When we spoke to the broker he said, just hope it doesn't go down more.

If my father was alive, he would probably take the medallions back, buy cars and start renting out the car/medallion himself. However, my mother is not really capable of doing that and with full time jobs, the kids are not sure if we could handle it for her.

Some questions for all of you:
  • Does $1,000/month per medallion seem low or normal?
    When we have mentioned shopping around to other brokers in the past, the current broker has warned that other places may offer a higher rate but will turn the medallion back over to you with no compensation if they have trouble renting it out. Is that really happening or is it a scare tactic?
    Would you say it requires a lot of effort to rent out/manage medallions on your own? Could someone with a full time job do it?
    What are average rates that drivers pay to rent a taxi on a weekly or monthly basis these days?
     

Thanks in advance for your answers and advice.

P.S. I would love to hear about anything I can do about fighting the decline of the industry. I thought about writing letters (to the TLC, City Council, etc.), but I get the impression that none of that is really making any difference. I am in marketing by trade, so any way I can lend my expertise to the cause, I am happy to do it.

Citytaxistreets

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Re: Help - Need Advice on Taxi Leasing
« Reply #1 on: March 08, 2017, 04:06:26 PM »
sorry to hear of your troubles, , managing medallions yourself right now is very difficult due to the shortage of drivers but its not impossible if you are ok at doing business, because that's all it is,

Shop around, if you get a higher price at another broker, and then they give the medallion back , does it make it that much worse?, you are hanging on by a string with your current broker anyway.  I would go to one of the old garages that manage a lot of cars , that has been in the business a long time, maybe they will tell it to you like it is. In this situation there is no time for games, use your own intuition to sense their integrity while looking for the best price,  As far as you can discern sense that has they will treat you fairly. 

Rob

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Re: Help - Need Advice on Taxi Leasing
« Reply #2 on: March 09, 2017, 12:01:48 AM »
This is yet another problem that TLC commissioners refuse to see even though this problem has been staring at them if not screaming at them for a while now.

I know a guy who retired and leased his medallion to get a half-decent retirement - not anymore - his lease was dropped
many times over and now he can't do anything with it - too old to run, too old to drive, can't sell, can't loan money against it, basically
TLC has killed this industry so that few select Uber billionaire owners could (illegally) enrich themselves.
TLC doesn't care about taxi drivers, owners, lessees, or lessors - it's crystal clear to everyone.

I also reported here that a friend of mine - also medallion owner-driver - went Chapter 11 just weeks ago unable to carry this
idiotic burden anymore. Why pay for medallion if Uber does same thing without?? He dropped it - couldn't take it anymore.

I drive my medallion and am having huge difficulties finding another driver and keep my medallion loan payments on time.
If you're thinking doing it yourself - don't.  I hate to admit it to myself and my family but I'm probably a few months away from
declaring a bankruptcy myself. You just can't make it. Math doesn't work anymore. And me having my medallion loan only makes
it worse.

Bottom line, TLC did what no regulatory agency has done before - it broke existing laws and regulations to benefit one
multibillion dollar player at the expense of regular people like you and me. And then TLC came up with absurd "competition is good"
mantra to deflect any arguments knowing full well that TLC is not regulating Uber as taxis, Uber doesn't pay for a medallion while
still essentially doing non-pre-arranged street hail with electronic device which was supposed to be our taxi exclusive right.

I would encourage you - if you can - to convey your message to TLC, City Hall and Office of Billy D.
Having a marketing background may help since all prior requests to restore fairness by me and many many others
have failed on deaf ears. Uber lobbyists have total REGULATORY CAPTURE of TLC and it is self-evident to anyone wiling
to admit reality. Once you meet them - prepare to hear them all say "we understand", "yes yes", "level-playing field",
and other pre-packaged deflections. Truth is - they did nothing, they broke rules we obeyed, they took away what's our,
they lied and deceived, all that, and more, left NYC taxi industry essentially bankrupt.

Taxi Son

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Re: Help - Need Advice on Taxi Leasing
« Reply #3 on: March 13, 2017, 11:50:02 AM »
Thank you all for your help and feedback.

It looks like my best bet at this time is to shop around and see what other brokers are paying. If anyone is comfortable recommending someone or sharing what they think is a good/average per month price for leasing out a medallion, that would be great.

Also, I hope to be able to join the hearing on April 6 and will also be writing some letters. I question how much that might help, since the politicians that are getting their pockets lined don't have much incentive to listen, but I guess that is the only recourse, so it is worth a shot.

Thanks again.

taxitalk

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Re: Help - Need Advice on Taxi Leasing
« Reply #4 on: March 14, 2017, 07:03:05 PM »
What about a FARE INCREASE for the drivers next month - or AT LEAST
a ride sharing plan THAT WORKS...
-and aren't dispatched by 'straight thug' folks - some of who(m) PROBABLY
have criminals records and NEVER drove cabs !! (...or so I've heard !! )

In essence - HYPOTHETICALLY - if yellow cab drivers made $1,000 per day...
would there EVER be a driver shortage ??
Would the medallion
be dropping like a f-ing STONE ?!?

Hmmm... I don't think so.
In fact, I think the taxi industry is being screwed ON PURPOSE by a few evil twerps
who are a hair's breath from being OUTTED and thrown in f-ing JAIL !!

This is CRIMINAL abuse of REAL cabbies
- and LEGITIATE small business people in NYC !
... in my opinion !!
« Last Edit: March 14, 2017, 07:05:20 PM by taxitalk »

taxitalk

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Re: Help - Need Advice on Taxi Leasing
« Reply #5 on: March 14, 2017, 07:48:30 PM »
Look - 'running a cab' can't POSSIBLY be that bad now ! 

The credit card money comes in on COMPUTER....
direct to the bank account of the medallion owner...

- not like the old days when you had to run into the street
and grab a guy by the throat (...literally !! )

- either that or get measly low rental rate. - IMO !!

Taxi Son

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Re: Help - Need Advice on Taxi Leasing
« Reply #6 on: March 15, 2017, 11:55:33 AM »
Is there a fare hike proposal (for drivers) in front of the City Council? If so, when is that supposed to be voted on (not that they actually stick to time tables)?

nyctaxinews

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Taxi Son

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Re: Help - Need Advice on Taxi Leasing
« Reply #8 on: March 20, 2017, 11:38:21 AM »
Looks like you can go to this hearing in person or submit written comments to the TLC. Is it more effective to go in person?

How long do these hearings usually last? I want to try and attend/testify, but I am trying to see if I can make it work since I would have to take time off from work.

Thanks.

nyctaxinews

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Re: Help - Need Advice on Taxi Leasing
« Reply #9 on: March 20, 2017, 03:28:04 PM »
I would say that if you go in person you would be more convincing. Definitely GO if you can. 

Nyc cabbie

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Re: Help - Need Advice on Taxi Leasing
« Reply #10 on: March 21, 2017, 07:58:44 PM »
hi are you planning to sell your medallion ? 

YELLO

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Re: Help - Need Advice on Taxi Leasing
« Reply #11 on: December 08, 2018, 02:41:30 PM »
Hi Taxi Son,

Did you ever find a new leasing agent for your mother's medallions?

Hope all is well with you and your family.

YELLO


« Last Edit: December 08, 2018, 02:43:31 PM by YELLO »

Taxiwerker

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Re: Help - Need Advice on Taxi Leasing
« Reply #12 on: December 08, 2018, 04:34:16 PM »
I want a New One Too.....

Whos Paying WHAT....???.......Mine is Giving Me a LOW Blow a 1000 Bucks..!!!

nyctaxinews

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Re: Help - Need Advice on Taxi Leasing
« Reply #13 on: December 08, 2018, 05:35:48 PM »
We should all meet in the chat room 7PM Sunday

http://www.nyctaxinews.com/chat.html

Taxi Son

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Re: Help - Need Advice on Taxi Leasing
« Reply #14 on: December 10, 2018, 10:30:14 AM »
Sorry, I wasn't near a computer yesterday at 7pm.

I called around to some places at the time and got some prices that were better (around $1,500/month). I never ended up switching though because I wanted to wait and see what happened with the lawsuits, city council, etc.) before locking in that number for 4 years. also, I was concerned that a broker with no loyalty to us might just dump us if things didn't go well.

I agree that it would be nice to know who pays what. Maybe we should start some sort of list.

Have things gotten better since the moratorium on new app licenses or are brokers still claiming that business is slow and that is why they are paying such low rates?


meter peter

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Re: Help - Need Advice on Taxi Leasing
« Reply #15 on: December 10, 2018, 02:27:35 PM »
Your lucky to find a broker to take it at all. Some don't pay the fees. Be careful of you switch. If your present guy is honest stick with him. He is hurting too. We all are. Sorry for your troubles. Good luck.

YELLO

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Re: Help - Need Advice on Taxi Leasing
« Reply #16 on: December 10, 2018, 04:37:58 PM »
I think you made the right decision.