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ACQUISITIONS AND DISPOSITIONS
3 Months Ended
Mar. 31, 2021
Business Combinations [Abstract]  
ACQUISITIONS AND DISPOSITIONS ACQUISITIONS AND DISPOSITIONS
Acquisitions
The Company accounts for business combinations under the acquisition method of accounting, under which the Company allocates the purchase price to the assets and liabilities assumed based on an estimate of fair value.
During the three months ended March 31, 2021, the Company acquired two dealerships representing two franchises in the U.S. Aggregate consideration paid for these dealerships, which were accounted for as business combinations, totaled $49.9 million.
During the three months ended March 31, 2020, the Company had no activity related to acquisitions.
Dispositions
During the three months ended March 31, 2021, the Company’s dispositions include one dealership representing one franchise and one franchise disposition within an existing dealership in the U.S. The Company recorded a net pre-tax gain totaling $1.0 million related to these dispositions. The Company also terminated one franchise representing one dealership in the U.K.
During the three months ended March 31, 2020, the Company had no activity related to dispositions.
The Company’s dispositions generally consist of dealership assets and related real estate. Gains and losses on dispositions are recorded in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.