Police say the armed suspect barricaded himself inside a vehicle at the dealership in the 1800 block of Santa Monica Boulevard.
The standoff began around 2 a.m., though it is unclear what led up to the incident.
AIR7 HD was overhead as SWAT team members chased the suspect down a nearby alley, where the K-9 cornered the suspect. The man, whose identity has not been released, was quickly taken into custody.
The area of Santa Monica Boulevard and 18th Street remained blocked off as Santa Monica police worked to clear the scene.