At Arnold's Drive-In, Fonzie laughs at Richie driving his parents car. Richie decides to go inside rather than be insulted and on the way in, he and Potsie ask Betty Wilkens and Trudy if they want to have a burger and a malt with them, but they decide to get a ride home with Ralph because he has his own car.
Richie and Potsie discuss how they will get to the upcoming sock hop and talk about buying a car to split between them.
While watching a boxing match, Howard elbows Joanie onto the floor. Marion takes Joanie away as Richie arrives home and asks him about buying a car. Howard suggests Richie wait until after finishing school to buy a car, but Richie decides to go ahead and buy it.
Richie and Potsie buy the car, which Howard is not impressed with, as it clearly has several issues. Joanie says that Richie got a phone call from Betty, who wants to meet Richie and Potsie at Arnold's along with Trudy, after they heard about the car.
Later at Arnold's, everyone approves of the car, including Fonzie. They ask Betty and Trudy to the sock hop, which they accept. They sit and wait, revealing that they had pushed the car to the drive-in rather than driving.
Richie and Potsie try to fix the car and soon, Fonzie arrives to take a look at it. He manages to repair it and take's the car's hood ornament as payment.
However, it takes them three hours to reach the sock hop, which concludes within minutes after their arrival. They go to "watch the submarine races" until the horn goes off and becomes stuck.
Howard receives a call from Betty's father after midnight. He tries to go back to sleep, but Marion convinces him to try to find the teenagers. He goes to Arnold's where Fonzie tells him where Richie and Potsie are.
Richie and Potsie again try to repair the car, but the battery is dead. They start trying to push the car as Howard arrives. The car – with the girls inside – then rolls into the lake. They go back to the Cunninghams' and Betty's father takes the girls.
Later, at the dinner table, Richie tells his family that Fonzie has taken the car off their hands and resold it.
- Ron Howard as Richie Cunningham
- Marion Ross as Marion Cunningham
- Anson Williams as Warren "Potsie" Weber
- Tom Bosley as Howard Cunningham
- Howard refers to David and Ricky Nelson from the television series, The Adventures of Ozzie and Harriet and Beaver Cleaver from Leave It to Beaver.
- The drive-in changed its name to "Arnold's" and was formerly called "Arthur's" in the previous episode.