Exhibit 99.1

Sonic Automotive, Inc. Reports Strong Operating Performance and Earnings Growth; Hits

Leverage Target

CHARLOTTE, N.C. – October 31, 2006 – Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its 2006 third quarter earnings from continuing operations were $29.1 million, or $0.66 per diluted share, compared to $28.6 million, or $0.65 per diluted share, in the prior year period. The results for the quarter ended September 30, 2006 include $0.01 per diluted share of stock option expense related to the Company’s adoption of SFAS 123R.

Total revenue for the third quarter of 2006 increased 7.5% with same store revenue up 2.8%. Selling, general and administrative expenses as a percentage of gross profit improved to 74.7% for the quarter compared to 75.6% a year ago. The Company’s debt-to-capital ratio was 40% at September 30, 2006, compared to 46.0% at December 31, 2005.

“We continued our consistent trend of improved operating performance and increased profits in a challenging market environment as a result of our favorable brand mix and the ongoing implementation of our operating initiatives,” said President and COO Jeffrey C. Rachor. “Our used vehicle sales outperformed the industry and our fixed operations growth and margin reflect successful execution of our strategy. I am particularly pleased that we achieved our debt-to-capital target of 40%.”

Presentation materials for the Company’s October 31, 2006 earnings conference call at 11:00 A.M. (Eastern) can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “For Investors” tab and choosing “Webcasts & Presentations” on the left side of the screen.

To access the live broadcast of the conference call over the Internet go to: www.ccbn.com or www.sonicautomotive.com

A Live audio of the conference call will be accessible to the public at 11:00 A.M. (Eastern) by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: (800) 642-1687 (domestic) or (706) 645-9291 (international), conference call ID # 8080861.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 173 franchises and 37 collision repair centers. Sonic can be reached on the Web at www.sonicautomotive.com.

Sonic Automotive, Inc.

Results of Operations (unaudited)

(in thousands, except per share, unit data and percentage amounts)

 

     Three Months Ended     Nine Months Ended  
     9/30/2006     9/30/2005     9/30/2006     9/30/2005  

Revenues

         

Retail new vehicles

    $ 1,194,944     $ 1,123,393     $ 3,401,632     $ 3,107,640  

Fleet vehicles

      87,405       71,569       268,723       241,148  
                                

New vehicles

      1,282,349       1,194,962       3,670,355       3,348,788  

Used vehicles

      324,482       296,073       977,487       847,542  

Wholesale vehicles

      126,438       131,409       388,759       375,266  
                                

Total vehicles

      1,733,269       1,622,444       5,036,601       4,571,596  

Parts, service and collision repair

      281,328       251,654       829,891       727,694  

Finance, insurance and other

      53,064       49,570       146,228       138,434  
                                

Total revenues

      2,067,661       1,923,668       6,012,720       5,437,724  

Total gross profit

      316,966       290,954       926,776       830,866  

SG&A expenses

      236,766       220,039       714,979       636,750  

Depreciation

      5,688       4,243       17,399       11,455  
                                

Operating income

      74,512       66,672       194,398       182,661  

Interest expense, floor plan

      15,523       8,600       43,709       25,119  

Interest expense, other

      10,481       11,787       33,415       33,593  

Other (expense) / income

      19       (10 )     (647 )     15  
                                

Income from continuing operations before taxes

      48,527       46,275       116,627       123,964  

Income taxes

      19,420       17,676       46,642       46,731  
                                

Income from continuing operations

      29,107       28,599       69,985       77,233  

Discontinued operations:

         

Loss from operations and the sale of discontinued franchises

      (806 )     (2,842 )     (19,534 )     (9,945 )

Income tax benefit

      307       1,047       7,427       3,632  
                                

Loss from discontinued operations

      (499 )     (1,795 )     (12,107 )     (6,313 )
                                

Net income

    $ 28,608     $ 26,804     $ 57,878     $ 70,920  
                                

Diluted:

         

Weighted average common shares outstanding

      45,682       45,671       46,051       45,518  

Earnings per share from continuing operations

    $ 0.66     $ 0.65     $ 1.59     $ 1.77  

Loss per share from discontinued operations

    ($ 0.01 )   ($ 0.04 )   ($ 0.26 )   ($ 0.14 )
                                

Earnings per share

    $ 0.65     $ 0.61     $ 1.33     $ 1.63  
                                

Gross Margin Data (Continuing Operations):

         

Retail new vehicles

      7.6 %     7.4 %     7.6 %     7.6 %

Fleet vehicles

      2.4 %     3.0 %     2.7 %     2.9 %

Total new vehicles

      7.2 %     7.1 %     7.3 %     7.2 %

Used vehicles retail

      9.8 %     10.8 %     10.3 %     10.6 %

Total vehicles retail

      7.8 %     7.9 %     7.9 %     7.9 %

Parts, service and collision repair

      50.0 %     49.7 %     49.9 %     49.5 %

Finance, insurance and other

      100.0 %     100.0 %     100.0 %     100.0 %

Overall gross margin

      15.3 %     15.1 %     15.4 %     15.3 %

SG&A Expenses (Continuing Operations):

         

Personnel

    $ 136,902     $ 129,591     $ 414,291     $ 374,759  

Advertising

      17,019       15,367       48,122       44,235  

Facility rent

      25,153       20,346       73,864       59,472  

Other

      57,692       54,735       178,702       158,284  
                                

Total

    $ 236,766     $ 220,039     $ 714,979     $ 636,750  

Unit Data (Continuing Operations):

         

New retail units

      37,967       36,736       106,945       100,846  

Fleet units

      3,931       3,127       12,267       10,934  
                                

New units

      41,898       39,863       119,212       111,780  

Used units

      17,439       16,409       51,491       46,678  
                                

Total units retailed

      59,337       56,272       170,703       158,458  

Wholesale units

      14,396       15,239       41,621       42,382  

Average price per unit:

         

New retail vehicles

      31,473       30,580       31,807       30,816  

Fleet vehicles

      22,235       22,887       21,906       22,055  

Total new vehicles

      30,606       29,977       30,788       29,959  

Used vehicles

      18,607       18,043       18,984       18,157  

Wholesale vehicles

      8,783       8,623       9,340       8,854  

Other Data:

         

Same store revenue percentage changes:

         

New retail

      1.8 %       3.0 %  

Fleet

      20.2 %       9.8 %  

New total

      2.9 %       3.5 %  

Used

      4.7 %       9.6 %  

Parts, service and collision repair

      5.1 %       5.7 %  

Finance, insurance and other

      4.4 %       2.8 %  

Total

      2.8 %       4.3 %  

Balance Sheet Data:

         
     9/30/2006     12/31/2005              

ASSETS

         

Current Assets:

         

Cash and cash equivalents

    $ 22,664     $ 7,566      

Receivables, net

      323,212       396,225      

Inventories

      921,299       1,016,457      

Assets held for sale

      145,706       73,837      

Construction in progress and land expected to be sold in sale-leaseback transactions

      48,039       95,131      

Other current assets

      27,170       27,484      
                    

Total current assets

      1,488,090       1,616,700      

Property and Equipment, Net

      217,224       148,267      

Goodwill, Net

      1,154,653       1,122,538      

Other Intangibles, Net

      95,791       88,696      

Other Assets

      40,006       49,300      
                    

TOTAL ASSETS

    $ 2,995,764     $ 3,025,501      
                    

LIABILITIES AND STOCKHOLDERS’ EQUITY

         

Current Liabilities:

         

Floor plan notes payable - trade

    $ 426,005     $ 579,022      

Floor plan notes payable - non-trade

      533,433       410,296      

Trade accounts payable

      69,978       91,101      

Accrued interest

      15,321       17,378      

Other accrued liabilities

      197,329       167,060      

Liabilities associated with assets held for sale - trade

      56,582       45,953      

Liabilities associated with assets held for sale - non-trade

      37,522       6,937      

Current maturities of long-term debt

      3,013       2,747      
                    

Total current liabilities

      1,339,183       1,320,494      

LONG-TERM DEBT

      607,427       712,311      

OTHER LONG-TERM LIABILITIES

      35,549       29,479      

DEFERRED INCOME TAXES

      130,600       132,419      

STOCKHOLDERS’ EQUITY

      883,005       830,798      
                    

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 2,995,764     $ 3,025,501      
                    

Balance Sheet Ratios:

         

Current Ratio

      1.11       1.22      

Debt to Total Capital, Net of Cash

      40.0 %     46.0 %