Sonic Automotive (SAH) 8-K Sonic Automotive, Inc. Announces Third 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

quarter ended June 30, 2008.

Third Quarter 2008

Earnings Review

October 28, 2008

Sonic Automotive Q3 2008

Conference Call Topics

Overview of the Quarter

Vision & Strategy / Investment Principles

Operational Priorities

Financial Review

Closing Comments

Building for the Long-Term

The Quarter in Review

External Operating Environment

•Hurricane, credit, consumer confidence

•SAAR

Impairment Charges

Internal Operating Environment

•Realignment –

team aligned, focused on generating revenue / cash

Building for the Long-Term

Vision and Strategy

•

Our Vision

–

To Achieve Industry

Leadership in Automotive

Retailing

•

Our Strategy

–

Operational Excellence

–

Growth through Portfolio

Enrichment

•

First Order

–

Stop Making Stupid

Mistakes

–

Stop Friendly Fire

•

Principles

–

Guide decision making

–

Discipline to stick to them

Building for the Long-Term

Investment Principles

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

Operating Priorities

Used Vehicle Strategy

Trade Desk

Phase II

Phase III

Web-Tail

Maximize Margin

Improved Turns

Increased Profitability

Right inventory, Right Location, Right Price

On-line

Branding

Virtual Lot

Optimizing

Inventory

Market Shift to

Consumer

Control

Basic Process rollout

Less Auction Activity

Common Technology

5

Inventory

Control

Process

Standardization

Phase I

Operating Priorities

Fixed Operations Strategy

Phase II

Sales Training and

Merchandising

Phase I

Standardized Menu

Utilization and Pricing

Structure

Phase III

Technology

Complete Q4 2009

Complete Q3 2009

Complete Q1 2009

Merchandising

Action

Build customer –friendly

websites that create engagement

Deliver the offer –

buy here, buy now

Online App’ts

Right Inventory

Video

Fixed Operations

Used Vehicles

New Vehicles

Drive more traffic through more

targeted marketing

Traffic

Generation

Meet the Customer

on Their Terms

Operating Priorities

Internet Lead Strategy

Fulfill          

the customer

experience

through

disciplined

Sales Process

Dealership

Sales Team

Search Engine

Optimization

Operating Priorities

F&I –

Same Store

$1,061

$1,028

$999

$1,030

$985

$1,003

$983

$990

800

840

880

920

960

1,000

1,040

1,080

Q1 '08

Q2 '08

Q3 '08

Last 3 Qtr

2008

2007

Operating Priorities

Expense Management

Inventory

Advertising

Headcount

Controlling Inventory

New –

60.1

Used –

32.2

Parts –

36.4

Reduce Floorplan

expense

Free up frozen cash

Reduce bad debt

Right size to new

environment

Compared to Q3 07

In terms of dollars        

down $2.8m or 16.2%

In terms of gross profit  

5.1% down 20bps

Focus on Ad Effectiveness

Internet

Fixed

Pre owned

Dealership

Reduced annual expenses

by over $7.0 million which

will begin to be realized in

Q4 and moving forward

Region

Restructured regional staff

($4.6m savings)

Leverage of our staff’s

expertise

Geographic / Brand Review

New Vehicle

•

California

–

30% of total new vehicle revenue

–

Brand mix: 70% Luxury, 28% Mid-Line Imports and 2% Domestic

•

Texas

–

26% of total new vehicle revenue

–

BMW, Chevrolet and Ford brands outpaced local market during the quarter.

•

Florida

–

6% of total revenues, dependant on Cadillac

•

Brand Commentary

–

Cadillac is difficult

–

BMW/Mini –

22% of total new vehicle revenue

•

BMW gaining share in local markets; Mini sales up;

–

Honda -

16% of total new vehicle revenue

•

Gaining or maintaining share in markets; 44% of unit volume comprised of CA dealerships

–

Mercedes –

11% of total new vehicle revenue

•

Outperforming

local

markets

–

C

Class,

E

Class

sales

good

Financial Performance

(amounts in millions, except per share data)

(15.5%)

(11.8%)

(43.6%)

(68.9%)

(72.4%)

(63.2%)

(67.2%)

320bps

70bps

(1)

–

Includes estimated $0.08/diluted share loss associated with Hurricane Ike

(2)

-

Excludes continuing ops and discontinued ops after tax charges of $21.0 million and $11.9 million, respectively

2008

2008

Better/

Actual

(1)

Adjusted

(1)(2)

2007

(Worse)

Revenue

$1,785

$1,785

$2,112

($327)

Gross Profit

$286

$286

$324

($38)

–

Margin

16.0%

16.0%

15.3%

Operating Income

–

Amount

$9

$44

$78

($34)

–

Margin

0.5%

2.5%

3.7%

Net Income

–

Continuing Operations

($11.4)

$9.6

$30.9

($21.3)

–

Total Operations

($25.3)

$7.2

$26.1

($18.9)

EPS -

Diluted

–

Continuing Operations

($0.28)

$0.25

$0.68

($0.43)

–

Total Operations

($0.63)

$0.19

$0.58

($0.39)

Q3

Q3 2008

Amount After Taxes

(000's)

Loss from Operations

(2,011)

$   

Asset Impairments

(4,212)

Lease Exit Accruals

(7,649)

Loss on Disposal

(96)

Subtotal

(11,957)

Total

(13,968)

$ 

Discontinued Operations

Non-Cash

Same Store Revenue Change –

Q3 2008

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

Prior Year

New Retail

Used Retail

F&I

Fixed Ops

Rev

Other*

Current

Year

$2,088

($224)

($28)

($7)

($11)

($72)

$1,746

Volume

Rate: 12.6%

Vol: 87.4%

Volume

*The “Other”

Category includes used wholesale and fleet revenue

14.0%

8.5%

71.3%

66.5%

7.7%

Q3 2007

Q3 2008

Rent

Hurricane & Q3 Charges

All Other SG&A

SG&A Expenses as % of Gross Profit

74.2%

93.8%

Fixed Operations

Same Store -

Q3 2008

(2.8%)

(7.3%)

(3.8%)

(10.0%)

(7.0%)

(4.0%)

(1.0%)

Customer Pay

Warranty

Total

Days Supply

Sep-08

Sept 08

Industry

New Vehicles

Domestic

66.0

73.4

Luxury

63.0

67.4

Import

50.7

64.7

Overall

60.1

69.4

Used Vehicles

32.2

Note:

Industry

truck

days

supply

was

79

at

the

end

of

September,

while

car

inventory

was

60.

Capitalization

54.2%

54.8%

53.7%

57.6%

39.5%

43.6%

40.7%

38.9%

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Equity

Debt

Mortgages

46.3%

45.2%

Debt to Cap With Mortgages

2.7%

4.5%

6.9%

42.4%

45.8%

2.9%

Liquidity –

Revolver Availability

June

September

(mils)

(mils)

Revolver Balance

$115

$69

Revolver Availability

110

153

Memo: Mortgage Funding

$76

$115

Debt Covenants

June

September

Covenants

Current Ratio

1.18

1.23

>=1.15

Fixed Charge Coverage

1.72

1.65

>=1.20

Debt to EBITDA

0.94

0.82

<2.25

We

are

in

full

compliance

with

all

debt

covenants

Capital Spending

Third

Quarter

Nine

Months

(mils)

(mils)

Capital Spending

     - property

$7

$70

     - traditional

12

52

Total

$19

$122

Mortgage Funding

Secured in the Period

$39

$57

Q4 Outlook

Forecast Assumptions

Revised

Forecast

Same Store Gross Margins:

New

6.5%

Used

8.0%

Fixed Operations

49.7%

LIBOR Rate

4.3%

SAAR

12.0M

Q4 2008 Guidance

$.10 - $.20

Relatively

Stable

Summary

•

We

are

controlling

what

we

can

–

our

ability

to

execute

our

operational

priorities

•

Q4 Outlook

–

New vehicle environment will continue to be very challenging, not looking for usual

Holiday Push with Luxury.

–

New and Used gross margin pressure

–

Continued Challenging Economic and Capital Market Environments

•

Sticking to our strategy

–

Generating Revenue

–

Expense Control

–

Cash & Spending

–

Debt Reduction

•

We are building for the long-term

–

We are a Sales Organization that is made up of Ladies and Gentlemen who are

Committed to Taking the High Road.