Renting a TLC Car for Uber: Real Costs and Your Rights

In short: Renting a TLC-plated car by the week cost app drivers about $528 a week on average in TLC's 2024 driver survey, and rentals carry a 20.875% tax. Put together with fuel, maintenance and other costs, TLC's study found renting costs about 30% more per mile than owning. There is no cap on FHV rents, but rule 59A-21 says the lease must list every charge, and the owner may collect only what is listed.

Why so many drivers rent anyway: since 2018, new FHV licenses have been limited. A driver who doesn't already hold one must buy a wheelchair accessible vehicle (the only new licenses open) or rent from someone who has a license. In a follow-up survey for TLC's study, more than three-quarters of renting drivers said renting was the only way they could work as an FHV driver.

What drivers actually pay

All figures below come from TLC's December 2024 expense study, written for TLC by James Parrott (Revised Expense Model, sections 4 and 6). They are survey medians and averages from 2024, not today's prices.

Two points to understand:

• Part of the rent pays for the license, not the car. The study calls it "registration rent". In some large companies' agreements, a $175 weekly line was labeled "additional rent — For Hire Vehicle Permit Use", in some cases for a car 4 or more years old with over 100,000 miles.
• Prices vary. A separate study for Uber (by HR&A) averaged rent offers from six large companies at $430 a week for April 2023 to April 2024. TLC's study suggests part of the difference is that EVs, which rent for more, weigh more in its survey.

TLC's February 2024 review also said rental costs "typically exceed $400 per week, and may be much higher" depending on the type of car.

How to compare two rental quotes

Weekly prices are hard to compare because companies include different things. Turn every quote into the same shape before you choose:

1. Is the tax included? If a quote says $500 a week before tax, a 20.875% tax adds about $104, for roughly $604 a week. (Example numbers, not a real quote.)
2. What insurance comes with it, and what is the deductible? A low weekly price with a high deductible can cost more after one crash.
3. Who pays for maintenance and tires? If you do, add your own estimate. TLC's survey found a median of $3,500 a year for renters who paid it, about $67 a week.
4. Is there a mileage limit or a charge per mile? Full-time app drivers average about 32,500 miles a year in TLC's study, roughly 625 a week.
5. What is the deposit, and when does it come back? The lease must say, and it can't be more than 30 days after the lease ends.
6. What do you pay when the car is in the shop? By rule, rent must be pro-rated if it isn't your fault. A lease that says otherwise breaks 59A-21(c)(4).
7. What are the cancellation terms? If there is a cancellation fee, the lease must state how much notice you must give to avoid it.

Then multiply by 52 to see the yearly cost. At TLC's survey average of $528 a week, that is $27,456 a year before fuel.

Renting vs owning, per mile

The study gives three reasons renting costs more: the 20.875% tax, insurance priced into short-term rentals, and the "registration rent". It also notes that owners who rent out cars expect a profit.

Who pays for maintenance

Read the lease for this. Insurance is usually included in the weekly rent, but maintenance is not always. In TLC's special survey of renting drivers, 30% said maintenance was not included. Those who paid it reported a median of $3,500 a year; most of them rented from individuals rather than companies.

Before you sign, ask in writing: who pays for oil changes, tires, brakes and repairs after a breakdown? What if the car fails a TLC inspection? Whatever the lease says becomes your cost.

Your rights under rule 59A-21

TLC's rule for FHV leases (chapter 59, §59A-21) does not limit the price, but it controls how you are charged:

When an owner breaks these rules, TLC can fine them, and for overcharges the hearing officer must order the owner to pay you back what was charged in violation of the rule. TLC's Driver Pay for Drivers page lists DriverProtection@tlc.nyc.gov for complaints.

For the full list of what a lease must contain, and lease-to-own deals, see buying or leasing a TLC vehicle. Tolls on rentals have their own rules: see renting a TLC vehicle: how tolls get billed.

Things renters often get caught by

• Personal use. Ask whether the lease allows personal trips, and read can I drive a TLC car for personal use?.
• Documents in the car. The registration and insurance card must be in the car, and a missing one can lead to a summons (see rule 59A-30(a)(1)(i)). Check the glove box before your first shift.
• "Plates" for your own car. Renting just a license to put on your own car raises separate problems; read can I rent TLC plates for my own car? first.
• Base fees. Your base agreement is separate from your car rental. See your base agreement.

Rent or buy? Try your numbers

Use the calculator to compare a weekly rental with buying a car on a loan over the months you plan to drive. It uses only the numbers you enter.

If you are thinking of an EV, also read EV or hybrid for Uber in NYC. This page explains TLC data and rules; it is not legal or financial advice. If you have a dispute over money a rental company kept, a lawyer or TLC's Driver Protection Unit can help.