Sonic Automotive (SAH) 8-K Sonic Automotive, Inc. Announces Second Quarter Results

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 result 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 year

ended March 31, 2008.

Second Quarter 2008

Earnings Review

July 29, 2008

Building for the Long-Term

The Quarter in Review

Produced solid results in tough environment

•

Outperformed industry

•

Expanded used retail volume, F&I PUR

•

Controlled inventory

What are we doing now? PLENTY!

•

Ongoing expense initiatives 

•

Streamlined field operations

•

Refined focus on fixed operations

Sticking with our long-term strategy

•

2008 initiatives –

Training, e-commerce, enhanced customer experience

•

Focus on the higher margin segments of the business

•

Sound spending principles

•

Portfolio enrichment / grow the business

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

Web 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

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.

Building for the Long-Term

2008 Strategic Focus

Financial Performance

(1.7%)

(1.0%)

(18.0%)

(30.2%)

(59.0%)

(21.0%)

(52.6%)

60bps

10bps

2008

2007

Better/ 

(Worse)

Revenue

$1,980

$2,015

($35)

Gross Profit

$311

$314

($3)

–

Margin

15.7%

15.6%

Operating Income

–

Amount

$60

$73

($13)

–

Margin

3.0%

3.6%

Net Income

–

Continuing Operations

$20.1

$28.8

($8.7)

–

Total Operations

10.8

26.4

(15.6)

EPS -

Diluted

–

Continuing Operations

$0.49

$0.62

($0.13)

–

Total Operations

0.27

0.57

(0.30)

Q2

(amounts in millions, except per share data)

Q2 2008

Amount After Taxes

(000's)

Loss from Operations

(3,369)

$   

Asset Impairments

(3,010)

Lease Exit Accruals

(529)

Loss on Disposal

(2,414)

Subtotal

(5,953)

Total

(9,322)

$   

Discontinued Operations

Non-Cash

New Vehicle Industry/Consumer Confidence Trends

Year over Year

(60.0%)

(40.0%)

(20.0%)

0.0%

Cons Conf

(39.6%)

(46.5%)

(51.5%)

Car

5.2%

2.4%

(7.9%)

Truck

(17.4%)

(23.6%)

(28.4%)

Total

(6.9%)

(10.7%)

(18.3%)

Apr

May

June

Days Supply

Jun-08

Jun 08

Industry

New Vehicles

Domestic

61.2

77.7

Luxury

65.9

58.3

Import

48.9

49.0

Overall

60.1

62.8

Used Vehicles

30.4

Note: Industry truck days supply was 90 at the end of June, while car inventory was 41.

Gross Margin %

(Continuing Operations)

New vehicle factors:

•

Industry days supply on trucks, shortage of hot

selling models

•

Shift to less expensive vehicles

Used vehicle factors:

•

Less trades coming in, more purchases

•

Large % CPO

•

Truck / SUV values plunged

Fixed Operations:

•

Softening demand

•

Shift to lower margin services

2008

2007

B / (W)

New -

Retail

7.5%

7.4%

10 bps

Used

8.5%

9.3%

(80) bps

Fixed Ops

50.0%

50.8%

(80) bps

Same Store Revenue Change –

Q2 2008

•

F&I per unit increased $27 or 2.7%

•

Certified pre-owned volume up 23.9%

(11.7%)

2.7%

(0.8%)

(2.1%)

(7.2%)

(18.8%)

(7.8%)

New

Used

Fixed

Operations

F&I

Sub Total

Wholesale

Total

New, Used, & CPO Retail Unit Sales

Same Store vs. Industry

*National Franchised Dealers

*National franchise dealers

**Excluding fleet –

with fleet, industry off 12.0%

(25.0%)

(20.0%)

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Sonic

(9.2%)

4.3%

23.9%

Industry

(20.0%)

(6.5%)

4.6%

Q2 New**

Q2 Used*

CPO Q2

Focus on used vehicles

continues to pay off

Fixed Operations

Same Store

0.4%

(4.0%)

(0.8%)

(5.0%)

(3.0%)

(1.0%)

1.0%

Customer Pay

Warranty

Total

8.3%

70.3%

70.9%

66.2%

6.9%

7.9%

Q2 2007

Q1 2008

Q2 2008

All Other SG&A

Q2 08 Hail Damage

Rent

SG&A Expenses as % of Gross Profit

74.1%

77.9%

79.2%

0.7%

Capitalization

54.8%

53.7%

57.6%

60.6%

54.0%

46.0%

39.4%

39.5%

43.6%

39.2%

2005

2006

2007

Q1 2008

Q2 Proforma

Equity

Debt

Mortgages

46.3%

42.4%

45.2%

Debt to Cap With Mortgages

2.9%

2.7%

6.0%*

*includes

mortgages set to

close in August

Forecast Assumptions

Original

Revised

Forecast

Forecast

Same Store Sales:

New Units*

(4.5%)

(7.2%)

Used Units

3.0%

4.4%

Fixed Operations Revenue

3.5%

(0.5%)

Hail Loss

-

$2.0M

Bond Redemption Premium (Int Exp)

-

$1.0M

LIBOR Rate

3.5% - 4.5%

2.5% - 3.0%

SAAR

15.5M

14.5M

*Includes fleet

Summary

•

Delivered sound results in a difficult environment

•

Sticking to our strategy

–

Focus on higher margin business

–

Investing in our people, alignment of regional teams

–

Digital marketing

–

Technology

•

Q3 Outlook

–

New vehicle environment will continue to be very challenging

–

New and Used gross margin pressure

–

Low consumer confidence low + higher energy prices = slower consumer spending

•

We are building for the long-term