Sonic Automotive closes record 2025 as Jeff Dyke eyes strategic growth in pre-owned and Echo Park

President Jeff Dyke of Sonic Automotive joins Inside Automotive to detail strategies for ongoing growth in pre-owned vehicles and Echo Park operations, following the company’s record-breaking 2025 performance. According to Dyke, the year concluded with $15.2 billion in revenue and $2.4 billion in gross profit.

“It just was amazing. It was a great quarter. October, November didn’t start it that way, but December finished like a freight train, as it always does for us,” Dyke said. “If you throw out some of the fake news years of COVID, that 2025 was probably from a KPI perspective, our best operational performance year we’ve ever had across all sectors of our business. We set nearly 800 records as an organization, which is just incredible.”

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

Echo Park, Sonic’s used-car brand, has rebounded after COVID-related slowdowns. Dyke described how access to franchise store inventory, loaner cars, and fleet vehicles has strengthened the operation. “We took a step back and said, ‘ Look, let’s break some of our rules here, and be a little bit more flexible with the details,” he said. 

Fourth-quarter revenue reached $3.9 billion, down 1% year over year, but gross profit rose 4% to $598 million. Dyke confirmed plans for two new store openings in the fourth quarter and three to six in 2027.

“When we put all that together, I feel like we can grow the business judiciously and put ourselves in a really good position as we go through the next couple of years with Echo Park.”

Dyke assessed the brand’s performance, noting that Nissan faces challenges as it continues to find its direction. He acknowledged Stellantis for showing marked improvement under stronger leadership. Mercedes, too, is making strides with its new leadership. In contrast, Audi struggles despite its team’s commitment to the brand, as it manages several stores with a long-term vision for success.

He discussed various industry challenges, with a particular focus on affordability and tariffs. In the fourth quarter, the average selling price exceeded $62,000 for the first time, which raises concerns about the sustainability of such prices. If this trend continues, the market is likely to see a decline in new-car sales alongside a significant increase in pre-owned vehicle transactions, which would ultimately be advantageous for the company.

On electric vehicles, Dyke said, “It’s down less than 5%. And now the country has a choice. We’re not being forced to buy battery electric vehicles. And so let it grow at its own pace… Mileage is not going to become an issue. Prices will come down…. There’s certainly a place for it.”

Looking ahead, Dyke remains cautiously optimistic. “We’re set up for a great year. We were set up for a great year last year, and we were worried about tariffs, but they really didn’t take effect because of the manufacturers and their deep pockets. They’re going to start passing on that cost. We are seeing prices rise.”