The incident happened at about 12.15am when a silver Seat Leon travelling along the Shipley Airedale Road left the road and collided with a barrier, close to the junction with Leeds Road.
The teenage passenger, a male from Bradford, was pronounced dead at the scene.
The only other occupant of the vehicle, its male driver, also from Bradford, was taken to hospital with serious injuries which are not believed to be life-threatening.
He was also arrested on suspicion of causing death by dangerous driving.
Police are appealing for anyone who saw the vehicle prior to the collision to contact the Major Collision Enquiry Team at West Yorkshire Police on 101, quoting log number 0014 of today.