Andrew Hockaday, an ex-regional manager for Reg Vardy has acquired the dealerships in Wolverhampton, Redditch and Stourbridge.
The Stafford dealership has been taken by Rees Caddick of Lakeside Volkswagen in Stoke. Sean Booth, owner of Parkway Volkswagen in Derby, has taken the VW dealership in Leicester.
Pendragon acquired the dealerships after it won a bidding war against rival dealer group Lookers for Reg Vardy for £506m last month.
The dealerships represented group assets of £16,770,625. However, they contributed a loss of £0.27 million to the Reg Vardy group last year.