Lookers has bought leasing busines Get Motoring UK.
The company trades as Vehicle Rental Services and supplies vehicles on short term leases to car rental operators in the UK.
Lookers said VRS complements its existing vehicle leasing businesses and with anticipated annual earnings of approximately £3 million (EBITDA), will help to broaden the range of sources of earnings in the group.
Peter Jones, chief executive of Lookers, said: "We are delighted to have acquired Get Motoring UK / VRS, which provides Lookers with the opportunity to extend our vehicle leasing businesses.
"We remain in a position to pursue strategic growth opportunities as they arise."