Lincolnshire-based Brown's Peugeot is closing after 20 years of service.
The Peugeot dealer on Newbridge Hill in Louth informed the French manufacturer that it wanted to close two weeks ago.
A spokesperson for Peugeot said: "About two weeks ago the sales agreement with us was ended and Brown's had no stock vehicles on site and no orders were being taken by customers.
"Those who have been served by Brown's for many years will be written to courtesy of Peugeot letting them know the details of their next nearest dealership.”
Brown's has not revealed the reason behind the closure and customers are now be directed to Peugeot dealerships in Boston, Grimsby and Lincoln.