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A lease-to-own or conditional purchase deal is a vehicle lease where part of every payment goes toward buying the car. You drive it while you pay, and the title (legal ownership) passes to you only when the purchase payments are finished. TLC's rules describe it as a lease that "includes the conditional purchase of the Vehicle" (Chapter 59, §59A-21).
One sentence: it's renting a car you are slowly buying, and TLC rules make the seller show the price and track every payment toward it.
The FHV license exception that closed
TLC's lease-to-own guidelines (dated 06/28/2022) show what the exception required: the lease start date no later than August 14, 2018; the VIN written in the lease and matching TLC's trip records; an option to buy; a term of two years or more; every page initialed; and a title in the driver's own name. You may still see this guide online or hear about it from others; it no longer leads to a license.
What TLC rules require today
There is no lease cap for FHVs: §59A-21(b)(5), the spot for limits on lease costs and fees, is marked "RESERVED." So for an Uber or Lyft car, the protection is in the written terms and receipts, not a price limit. Check the plan before you sign with our buying or leasing a TLC vehicle guide and the lease vs buy tool.
Example
You sign a 3-year lease-to-own on a TLC-plated hybrid from a fleet. The contract lists a $30,000 sales price (made-up figure) and itemizes registration and other fees. Each weekly receipt shows, say, $150 toward the purchase, $4,500 paid so far (30 weeks), and 126 of the 156 weekly payments left (also made-up figures). If the receipts stop showing these lines, that is a rule issue you can raise with TLC. Note: buying the car does not give you the plates. An FHV license stays with the person or company whose SSN or EIN is on it (TLC Vehicle FAQ); see can I rent TLC plates for my own car?.
Related terms
- DOV lease — the taxi version (driver-owned vehicle).
- Lease cap and taxi lease caps.
- Commercial Motor Vehicle Tax — NYC Finance counts a buyer under a conditional sale agreement as the "owner" for this tax.
- E-ZPass in a leased car: can I use my own E-ZPass? and E-ZPass replenishment in a lease.
Frequently asked questions
What is a conditional purchase lease?
A lease in which part of what you pay goes toward buying the vehicle, and ownership (title) passes to you only after all the purchase payments are made. TLC's rules call it a lease that 'includes the conditional purchase of the Vehicle.'
Can I still get TLC plates through a lease-to-own deal?
No. Rule 59A-06(a)(2)(ii) let some lease-to-own drivers get a new FHV license, but only until August 13, 2023, and only for leases signed before August 14, 2018. Today new FHV licenses go only to wheelchair accessible vehicles.
What must an FHV lease-to-own contract show?
The vehicle sales price and an itemized total of all other fees and costs to be paid before title passes (59A-21(b)(3)(ii)(E)). Every receipt must show how much of the payment went toward the purchase, the total paid toward it so far and the number of payments left (59A-21(e)).
Is there a cap on taxi lease-to-own payments?
Yes, when a medallion is leased together with a car you are buying from the owner or agent: the medallion lease cap plus $275 a week for the car, and total car payments can't exceed $42,900 (58-21(c)(4)).
Sources
Last reviewed against the official sources on .
- TLC Rules Chapter 59, §59A-06(a)(2), §59A-21 (updated Feb 27, 2026) nyc.gov
- TLC: Conditional Sale / Lease to Own Guidelines (PDF, 06/28/2022) nyc.gov
- TLC Rules Chapter 58, §58-21(c)(4) (updated Feb 27, 2026) nyc.gov
- NYC Department of Finance: Commercial Motor Vehicle Tax (who is the owner) nyc.gov
Spotted something out of date? Tell us and we'll check it against the official source.
TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.