Mark Mitchell will shut his dealership in Eastham on the Wirrall, at the end of this month.
"I would never want to force my faith on anyone else nor do I want to appear self righteous, but I live my life within a biblical framework which sees Sundays as a day of rest. But I equally believe in a work-life balance which my staff appreciate.
"Sunday is a significant and well-earned day off for our team to spend with their families and friends. Our business is about more than just selling cars," says Mitchell.
Mitsubishi had insisted Mitchells open on Sundays.
Mitchell, who has a Lexus franchise (Chester) and two Skoda franchises (W. Kirby and Chester) and is scheduled to open a Mazda outlet in Chester in August, will now transfer all staff to other outlets in the group.