The most aggressive buyer in last year’s dealership buy-sell market is growing again.

Lithia & Driveway announced the acquisition Tuesday of Elk Grove Subaru in Elk Grove, Calif., from the Knight Group, a move Lithia said will “strengthen its density in the Southwest region.”

The dealership in the Sacramento area is Lithia’s second addition of 2025 — both Subaru stores. The company, which operates more than 340 locations in the U.S., Canada and the U.K., purchased Stohlman Subaru in Sterling, Va., in January.

“This addition strengthens our presence in the Southwest region and continues our strategy of expanding our network with high-performing partners like Subaru,” Lithia president and CEO Bryan DeBoer said. “We look forward to continuing the store’s legacy of building customer loyalty and leveraging our omnichannel capabilities to realize Elk Grove’s potential.”

Lithia said its new dealership, which was acquired using existing on-balance sheet capacity, is expected to add $100 million in annual revenue.

Knight Group continues to operate seven California dealerships, four of them in Elk Grove.

Lithia increases share repurchase authorization

Lithia & Driveway announced a $350 million increase to its share repurchase authorization by its board of directors, bringing total funds available for future repurchases to approximately $748 million.

So far this year, LAD has invested more than $71 million to repurchase some 197,500 shares at a weighted average price of $361 per share, representing 0.75% of outstanding shares.