It happened at about 2 a.m. in the vicinity of Bowery and Canal Streets.
Police said the car was heading over the Manhattan Bridge and crashed into a fire hydrant.
When police arrived, the car was on fire.
The driver was able to get out but the passenger was trapped inside and was later pronounced dead at Bellevue Hospital. He has been identified as 17-year-old Shareef Bellerand of Brooklyn.
The 22-year-old driver is being held on suspicion of drunk driving and speeding. Charges are pending.
The fire hydrant was knocked across the street from the force of the crash.
Police have the area closed off for the investigation, which could impact drivers trying to get to and from the Holland Tunnel and the Manhattan Bridge.