Earnings call presentation materials

Cautionary Notice Regarding

Forward-Looking Statements

•

This presentation contains statements that constitute

“forward-looking statements”

within the meaning of Section

27A of the Securities Act of 1933 and Section 21E of the

Securities Exchange Act of 1934.

•

These forward-looking statements are not historical facts, but

only predictions by our company and/or our company’s

management.

•

These statements generally can be identified by lead-in words

such as “believe,”

“expect”

“anticipate,”

“intend,”

“plan,”

“foresee”

and other similar words. Similarly, statements that

describe our company’s objectives, plans or goals are also

forward-looking statements.

•

You are cautioned that these forward-looking statements are

not guarantees of future performance and involve risks and

uncertainties, and that actual results may differ materially

from those projected in the forward-looking statements as a

result

various

factors.

Among

others,

factors

that

could

materially adversely affect actual results and performance

include those risk factors that are listed in Sonic Automotive’s

Form 10-Q for the quarter ended September 30, 2007.

Corporate Culture

People

Vision

•

Buildings do not Sell Cars…People Do.

•

Take our People out of our Buildings, and

what do we have left?

–

Nothing; except empty buildings

•

Our People are our Greatest Assets and we

are investing in them

•

We like to invest where we make money,

and that begins with our people

•

Develop and Promote From Within

•

First and Foremost, We are a Sales

Organization

•

75% Sales and 25% Cost Control

•

Nothing happens until we sell a car

•

We are committed to “Take the High Road”

“Strategy in Motion”

Used Vehicle Process

Standard F&I Menu

Fixed Operations

Single DMS

Digital Marketing

(In Progress)

Growth through Prudent Acquisitions

Customer and Associate Satisfaction

Consistent Execution of Strategic Initiatives

Results in FY EPS target attainment of $2.54

Strategic Focus --

2008

Develop

Associates

Well Run

Operations

Valued

Customers

Grow

the

Business

•Institutionalize Operational

Excellence

•Standardize & Improve

Sales & Marketing processes

•Leverage common systems

and centralize

•Deliver Industry Leading

Customer Experience

•Differentiate through target

based Marketing &

eCommerce Infrastructure

•Acquire, Develop, and

Retain Top Talent

•Launch Phase 1 of Best-

in-class automotive retail

training.

•Strengthen the Balance

Sheet

•Targeted Acquisitions &

disposals

•Optimize Cost Structure

•Strengthen the Balance

Sheet

•Targeted Acquisitions &

disposals

•Optimize Cost Structure

Sonic’s vision is to preserve the core automotive retail principles

that have driven its past success and at the same time

leverage the opportunities of scale.

The Quarter in Review

•

Operating Margin 3.7%

•

EPS up 6.3%

•

Total revenue up 7.6%; Gross up 5.7%

–

Same store used vehicle revenue up 19.3%

–

F&I per unit up 6.9%

•

Best in peer group SG&A

EXECUTION

KEY

INTIATIVES

CONTINUES

Used vehicles, F&I, fixed operations, cost management

Financial Performance

2007

2006

Better/

(Worse)

Revenue

$2,113

$1,963

$150

Gross Profit

$322

$305

$17

– Margin

15.3%

15.5%

Operating Profit

– Amount

$77

$74

– Margin

3.7%

3.8%

Net Income

– Continuing Operations

$29.4

$28.9

$0.5

– Total Operations

23.0

23.2

-0.2

EPS

– Continuing Operations

$0.68

$0.64

$0.04

– Total Operations

0.54

0.52

0.02

(amounts in millions, except per share data)

7.6%

5.7%

4.0%

1.7%

-0.9%

6.3%

3.8%

10bps

20bps

Financial Performance

(amounts in millions, except per share data)

2007

2006 (1)

Better/

(Worse)

Revenue

$8,337

$7,985

$352

Gross Profit

$1,291

$1,228

$63

– Margin

15.5%

15.4%

Operating Profit

– Amount

$296

$262

$34

– Margin

3.6%

3.3%

Net Income

– Continuing Operations

$114.8

$96.8

$18.0

– Total Operations

95.5

81.1

14.4

EPS

– Continuing Operations

$2.54

$2.18

$0.35

– Total Operations

2.13

1.85

0.28

YTD

4.4%

5.2%

13.1%

18.6%

17.7%

16.0%

15.1%

30bps

10bps

(1) Includes Q2 2006 pretax charge of $27.6m.

Same Store Revenue Growth –

•

Focus on higher margin business more than offsets weaker new vehicle sales

•

Used retail sales up sharply, wholesale continues to decline

(2.6%)

19.3%

2.3%

8.9%

2.0%

(11.9%)

1.3%

New

Used

Fixed

Operations

F&I

Sub Total

Wholesale

Total

2008 Earnings Outlook

(Continuing Operations)

(1) Includes effect of same store sales, technology/training investment, and

floorplan interest improvements. Excludes any 2008 acquisitions.

2007 Reported Results

$2.54

Changes in dealerships held for sale

(0.09)

Adjusted 2007 continuing ops EPS

$2.45

2008 Activity:

Operations (1)

(0.06)

0.09

Other Interest

(0.14)

Income Tax Rate

(0.02)

Share Count

0.12

2008 Continuing Operations EPS Target

$2.35 -

$2.50

2008 Earnings Outlook

(Continuing Operations-

assumptions)

Share Count (mls):

2007

Fully Diluted

46.9

Interest Rates:

2007

First

Second

Half:

LIBOR (30 Day)

5.26%

3.50%

4.50%

Other Interest:

Mortgage Notes

Capitalized Interest

Interest Rate Swaps

2008 B/(W)

than 2007

($0.06)

($0.01)

($0.07)

Total Other Interest:

Memo: Floorplan

Interest

2008

44.6

($0.14)

$0.16

Summary

•

Strong operating and financial performance in 2007

•

Execution of key initiatives continues

•

Rollout of Phase II of used car strategy continues

•

Strength of higher margin departments will help offset a soft

new vehicle environment.

•

2008 Outlook

–

New vehicle environment challenging

–

Our strategy is unchanged; our strong performance will continue

–

Investment in our people underway

•

We are building for the long term