Marshall Motor Group has bought Lincoln Jaguar from the Lincoln Co-Op, taking the family-owned group's representation of Jaguar to four sites.
Its other car dealerships for the brand are in Peterborough, Cambridge and Ipswich.
All staff of Lincoln Jaguar, which traded under the Holland Brothers brand, have transfered to Marshall.
Chief executive Daksh Gupta said: "This is a great acquisition for us as it now gives us a larger contiguous territory, which serves the East of England from the Humber down to East Anglia."
Gupta said the takeover is consistent with Marshall's strategy of increasing the depth of representation with core brand partners, and to spread out from its previous Cambridge and Peterborough heartland of car dealerships.
Jeremy Hicks, managing director of Jaguar Land Rover UK, said Marshall is an important partner for Jaguar and it was pleasing to see the group's continued growth.
The deal means the exit from motor retail of Lincoln Co-Op, which is not part of The Co-operative Motor Group.