Friday, November 30, 2012
The 200: What Are They Really Getting?
The San Francisco Federal Credit Union will wave the usual 20% downpayment fee and the terms of the loan can be for as long as 30 years. This would work out to payments of about $850 per month. At the moment most companies are paying $2,500 for leasing a medallion from a medallion holder. This would give the (we need a new name - "Last of the List"?) holders a profit $1,650 per month or $19,800 per year. And, this doesn't include the pluses like getting the best shifts and not having to worry about being fired.
On the negative side: In the unlikely event that they actually kept the medallion for 30 years, they'd double the cost of the loan. On the other hand, they'd also have made about $600,000 during the same period.
Is this good deal? As my uncle Victor might say, "It's better than a slap in the belly with a wet fish." It's certainly better than being number 201 on the List.
My poster boys William Mounsey #82 (top photo) and Brian Rosen #50 were breathing big sighs of relief when I spoke to them. The both had been sure that they would get nothing. Rosen calculated that that he could pay off the loan in five years and he'd have $240,000 to retire on.
I also spoke with number 300 on the List. I told him that he might be able to get one because about one-third of the people in front of him would be ineligible. He responded by saying,
"I'm so disgusted by the whole thing that I don't even want one."