Sonic Automotive (SAH) 8-K Results of Operations and Financial Condition

Exhibit 99.2

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

results of 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 June 30, 2007.

Sonic Automotive

Third Quarter 2007

Earnings Review

October 30, 2007

The Quarter in Review

•

Profit from continuing operations up 9.4%

•

Total revenue up 5.7%; Gross up 6.0%

–

Same store used vehicle revenue up 11.1%

–

F&I per unit up 5.0%

•

Operating margin improved 10bps to 3.7%

•

SG&A 74.4% -

down 40bps from Q3 06

1

EXECUTION OF KEY INTIATIVES CONTINUES

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

2007

2006

Better/

(Worse)

(amounts in millions, except per share data)

Revenue

$2,186

$2,068

$118

Gross Profit

$335

$316

$19

   – Margin

15.3%

15.3%

Operating Profit

   – Amount

$80

$74

$6

   – Margin

3.7%

3.6%

Net Income

   – Continuing Operations

$31.8

$29.0

$2.8

   – Total Operations

26.1

28.6

(2.5)

EPS

   – Continuing Operations

$0.70

$0.66

$0.04

   – Total Operations

0.58

0.65

(0.07)

Q3

Performance Overview

2

5.7%

6.0%

8.5%

10bps

9.4%

(8.7%)

6.0%

(10.8%)

$0.60

$0.61

$0.62

$0.63

$0.64

$0.65

$0.66

$0.67

$0.68

$0.69

$0.70

($0.03)

$0.66

$0.70

($0.02)

$0.09

Performance Overview

EPS

3

Performance Overview

Same Store Revenue Growth

Execution in Motion

Execution in Motion

Same store retail used volume up 5.4%

Fixed Operations same store customer pay revenue up 5.4% (up 9.8% in total)

F&I per unit up $51 on a same store basis

(0.8%)

11.1%

2.3%

3.4%

1.8%

(15.8%)

0.7%

New

Used

Fixed Operations

F&I

Sub Total

Wholesale

Total

4

Used Vehicle Performance

Execution in Motion

Trade Desk

Phase II

Phase III

Web-Tail

Maximize Margin

Volume Growth

Increased Profitability

Right inventory, Right Location, Right Price

On-line

Branding

Virtual Lot

Sonic “Auto

Pilot”

Optimizing

Inventory

Market Shift to

Consumer

Control

•7 Quarters of Same store

volume improvement

•Net Margin up

•CPO % stable

Basic Process rollout (best practices)

Less Wholesale/Keep more trades

Common Technology (S.I.M.S)

5

Inventory

Control

Technology

Introduction

Phase I

SG&A Expenses

Execution in Motion

7.9%

66.9%

66.6%

7.8%

Q3 2007

Q3 2006

All Other SG&A

Rent

74.4%

74.8%

40 bps

6

28.6% of Total 

Revenue

Same store

used, F&I up

New Margin

compression

remains a

concern

7.4% of Total Revenue

Impacted by construction

at our large Toyota

dealership

2.6% Total Revenue

Unemployment Rate (as of Sep) 7.5%

Excluding Michigan, Sonic Cadillac

new unit volume performed better

than the Industry

Geographic Review

24.9% of Total Revenue

Overall good performance

14.8% of Total

Revenue

Improvement in

all areas

Difficult Sales Environment

Stable Sales Environment

7

Inventory Management

Days Supply

Sep-07

Sep 07

Industry

New Vehicles

Domestic

(excluding Cadillac)

51.9

70.3

Luxury (

including Cadillac)

41.3

40.6

Import

40.9

45.6

Overall

43.6

57.3

Used Vehicles

37.0

8

Debt to Capital Ratio

(1)

(1) –

Net of Cash

35 -40%

39.1%

39.4%

41.2%

41.9%

Q4 2006

Q1 2007

Q2 2007

Q3 2007

Target

9

•Long Beach BMW/Mini

•Two mortgages in place; 

Two more to close in Q4

•CAC sale

•Share repurchases

Q4 Outlook

•

Generally stable operating environment

–

New vehicle softness offset by other opportunities

–

Stable margins and expense levels

–

Strength in certain markets and brands will be offset by softness in others

•

Reaffirming

EPS

target

to

$2.50

–

$2.60

–

Includes impact of closed acquisitions

–

Continued execution of key initiatives and expense control

•

Increased share repurchase authorization by $40 million

–

$33 million repurchased in the quarter; $43 million year to date

–

Prudent and opportunistic purchases; continue to pick away at dilution

10

Summary

•

Top priority -

Execution of key initiatives

•

Executing disciplined and prudent acquisition

strategy

•

Strategy is sound; team focused on delivering

results

11

Reaffirming Full Year Guidance                

$2.50 -

$2.60