Tony takes a second job working as a chauffer for a wealthy but friendly woman named Christina. The two of them hit it off while he's driving her around, and Tony develops a crush on her. By the time Tony finally gets up the nerve to ask her out, it's too late-- she has just become engaged.

Latka is eagerly anticipating a reunion with his ex-girlfriend from the old country, Simka. She arrives at the garage and while Latka is in the bathroom, Alex warns her of Latka's multiple personalities. Sure enough, at Latka's apartment later, Vic Ferrarri makes his appearance and seduces Simka. Much to Latka's dismay, soon his alter-ego, Vic, and Simka seem to be an item. Alex encourages Latka to fight Vic for Simka, which he does in hilarious fashion and Vic never returns.

Jim befriends a runaway child, who has stowed away in Tony's cab, and soon has ""adopted"" him. When the gang gets wind of this, they find the kid's parents and reunite them.

Tony's dad, a merchant seaman who Tony hasn't seen much of, arranges to bring Tony on a sea trip with him. Tony is hesitant but doesn't want to disappoint his dad, so he goes along. On the trip, Tony spends much of the time seasick, but bonds with his dad and they engage in a bar brawl in Singapore, and almost get matching tattoos until they think better of it.

Alex's ex-wife, Phyllis, depressed and lonely, comes to see Alex, who takes pity on her and includes her in his holiday plans. This turns ugly, when she manages to bring the whole gang down with her self-pity. Her Christmas present to Alex is that she won't bug him for New Year's, which turns out to be the best gift she could give him.

Louie decides to buy a luxury co-op apartment with some help on the down payment from the newly wealthy Jim. Unfortunately, Louie first has to convince a snooty co-op board that he is right for their building (as he comes in, they are rejecting actress Penny Marshall because they don't approve of the actress lifestyle). Bringing Alex for support, Louie has his work cut out for him when he sees that the board is bigoted. Alex goes on a tirade against their discriminatory process, and the board accepts Louie just to spite Alex.