Buying or Leasing a TLC Vehicle: Rules Before You Sign

In short: In NYC, the vehicle and the TLC vehicle license are two different things. A used car with TLC plates does not come with a license: TLC says an FHV license is not transferable. New FHV licenses are currently issued only for wheelchair accessible vehicles. So if you need a car, you can lease one from a license holder or, if they already hold an FHV license, buy a new car and move the license onto it. If you lease, TLC rules give you real protections: a written lease, every fee listed, receipts, and a deposit back within 30 days.

This page explains the rules. It does not recommend dealers, lenders or leasing companies, and it is not financial or legal advice.

First: the license stays with the license holder

Three facts shape every decision:

1. No transfers. TLC's vehicle license FAQ says: "FHV license is not transferable." It stays attached to the SSN or EIN on the original application, which cannot be changed.
2. New licenses are limited. TLC's FHV license page says only owners of wheelchair accessible vehicles (WAVs) may apply for a new FHV license. A license issued that way is restricted to WAVs; any replacement vehicle must also be a WAV. New electric-vehicle FHV applications stopped on November 13, 2023, after a court order.
3. One license per car. Only one FHV license can be in effect for a vehicle, identified by its VIN (59A-04(j), 59A-09(b)).

Which path fits you?

If you buy a car that already has TLC plates

If a seller offers a car "with TLC plates," be careful:

• The seller's FHV license cannot move to you. You would need your own license, which today means a WAV license or an existing license you transfer onto the car.
• The plates belong to the seller's registration and TLC record, not to the sale. Ask the seller in writing what will happen to the plates and the license, and confirm with DMV before you pay.
• Look up the plate and VIN in TLC's public list of active FHVs on NYC Open Data to see whose license it carries.

If you hold a license and buy a used car for it, check its history: TLC inspects for the NYS §301 items and its own rules, and the car must pass within the allowed tries. A former taxi must be repainted, because FHVs can't be taxi yellow (TLC decals and trade dress). There is no TLC retirement age for FHVs, but there is for most taxis; see TLC vehicle retirement age.

If you lease or rent: your rights under rule 59A-21

Rule 59A-21 applies whenever an FHV owner leases a car to a driver, "or otherwise make[s] a Vehicle available to a Driver for use in exchange for compensation, for any period of time." That includes daily and weekly rentals. It does not apply where a union contract (collective bargaining agreement) governs the relationship.

Lease-to-own deals need extra care

A lease that ends with you owning the car (a "conditional purchase") is the biggest money decision on this page. The rule gives you three tools to track it:

• The price up front. The lease must state the vehicle's sale price and an itemized total of every other fee you must pay before the title passes to you.
• A running count on every receipt. Each receipt must show how much of that payment went toward the purchase, the total you have paid toward the purchase so far, and how many payments are left.
• Damage refunds. If you paid for damage and the owner later got paid for the same damage by someone else, such as an insurer, the owner must refund you.

Compare the total of all payments with the car's market price before you sign. Remember that the FHV license is not transferable. Owning the car at the end does not, by itself, give you a TLC license to use it for hire. Ask the lessor in writing how that will work, and check with TLC before you rely on the answer.

Subleasing and sharing a car

If the lease allows you to sublease to another driver, every limit on subleasing must be written in the lease, and only drivers with a valid TLC license may sublease. The lessor must keep records of every sublease: dates, times, the driver's name, DMV license number and TLC license number. If you share a car with a second driver, make sure both of you are on paper. A summons written during the other driver's shift should not land on you.

The lessor must also keep the lease, itemized payments and deposit records for three years after the lease ends (59A-21(f)). That helps you if a dispute comes up later.

Before you sign

Taxis are different

Yellow taxis run on a medallion, a separate license for the taxi itself. Leasing a taxi or medallion is covered by rule 58-21, which has its own lease rules; the per-shift and weekly caps are laid out in NYC taxi lease caps. Under the current chapter 67, only accessible taxi models may be hacked up. If you are thinking about taxi driving, see our yellow taxi hub.

When something goes wrong

If you were charged a fee that isn't in your lease, didn't get a receipt, or your deposit wasn't returned on time, collect the lease, your receipts, bank or app records and messages. Then file a complaint with TLC or call 311, as the lease notice says. If you got a summons because of the car's condition or paperwork, look at TLC vehicle inspection, FHV insurance requirements and TLC plates for FHVs. For pay rules from app companies, see FHV driver minimum pay.