Rallye Lexus to relocate from Glen Cove to new $37M dealership in 2027

Rallye Lexus' Glen Cove dealership will be parked at a new location in 2027.

The luxury auto dealership will relocate from Glen Cove, where it has been for 36 years, to a new site more than double the size in Jericho in early 2027, according to Rallye Motor Co., a Roslyn-based owner of four luxury auto dealerships on Long Island. 

Rallye’s new Jericho dealership, at 125 Jericho Tpke., will offer more visibility and easier access that is more centrally located in its primary market area than the Glen Cove site has, Juliana Terian, president and CEO of Rallye Motor Co., told Newsday on Tuesday.

“But we’ve been looking for years and years for an appropriate spot for our Lexus store because right now, we’re up Cedar Swamp Road [in Glen Cove], which is … up near where all the beautiful homes that are on the water. But we’re not in a metropolitan area,” she said.

Available land large enough to accommodate a new dealership was hard to come by on Long Island, she said, so from 2018 to 2021, Rallye bought several adjoining parcels in Jericho totaling 5 acres for $19.7 million.  Two office buildings on one of the parcels were demolished in 2024, Terian said. 

The Rallye Lexus dealership, at 20 Cedar Swamp Rd. in Glen Cove, occupies a 32,000-square-foot building on a 2-acre site, Richard Neuman, manager of construction for capital projects at Rallye, wrote in an email.

The Jericho dealership, which will be about 8 miles away, will have a 67,000-square-foot building on the 5-acre site that Rallye bought, Neuman wrote.

Construction on the new dealership started last week, Terian said. The estimated $37 million price tag includes $30 million for construction, she said. A cost of $7 million is projected for design, furniture, fixtures and equipment, she said.

The new dealership will have a “state-of-the-art showroom,” a rooftop parking deck with spaces for 99 vehicles and an upgraded service center, according to Rallye Motor Co.

“An enhanced service center with advanced technology for added capacity, with customer conveniences such as SUV loaner vehicles for busy parents on the go and valet pick up and drop off at the customer’s home with every service,” the company said in the statement.

The company’s three other dealerships are Rallye BMW in Westbury, Rallye Acura in Roslyn and Rallye Motors, which sells Mercedes-Benz vehicles, in Roslyn. The four dealerships employ about 485 people.

The new Lexus dealership will be across Cantiague Rock Road from Rallye BMW, which is on the Westbury side of the street near the Jericho border.

Tariffs slow deliveries

The Lexus brand is owned by Japanese automaker Toyota Motor Corp., which also manufactures vehicles in the United States, Canada and Mexico.

Customer demand is strong for vehicles at Rallye's Lexus and other dealerships because their target demographic is higher-income consumers, Terian said. But customers are waiting longer for their purchased cars to arrive because of delivery delays caused by automakers' tariff-related inventory and supply chain issues, she said.

"Everything is slower, and it's not normal, as far as shipping and delivering and that kind of stuff ... All these things make up this kind of morass of lack of cars," she said.

In August, Toyota reported that it expected its profit to take a $9.5 billion hit due to U.S. tariffs on car imports. The top-selling automaker in the country, Toyota also cut its sales forecast for full-year operating profit by 16% to $21.7 billion, for its fiscal year 2026, which ends in March.

The United States has lowered some car tariffs under trade deals after hikes this year. For example, tariffs on auto imports from Japan were cut from 27.5% to 15% on Sept. 16.

Overall auto sales in the United States this year have been strong, partly because automakers have largely absorbed the price increases from tariffs, said Stephanie Brinley, associate director for the Auto Intelligence service at S&P Global Mobility in Detroit.

“They’ve just sucked it up and that can’t continue on a long-term basis,” said Brinley, who added that tariff costs will be factored more into retail prices for 2026 vehicle models.

How it started

Rallye got its start on Sea Cliff Avenue in Glen Cove in 1958 with a small imported-car service garage co-owned by Terian’s husband, Peter Terian, and his partners, George Moss, John Colgate and Serge Toumaniantz. Maserati was Rallye’s first auto dealership franchise.

By 1987, when the company was run by just Peter Terian and Moss, the Rallye Motors dealership for Mercedes-Benz, Rolls-Royce and BMW opened in Roslyn, Juliana Terian said. Two years later, the Lexus dealership opened on Cedar Swamp Road in Glen Cove, but Rolls-Royce sales were discontinued, she said.

The Acura dealership opened next door to Rallye Motors in Roslyn in 1991.

The BMW dealership was relocated to its own site in Westbury in 2007. 

Peter Terian died in 2002. Moss died in August.

Correction: The estimated cost to build and equip the new Jericho dealership was incorrect in a previous version of this story due to incorrect information provided by Rallye Motor Co. 

With Reuters

By Tory N. Parrish

tory.parrish@newsday.comToryParrish1

Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.