UNITED STATES
                         SECURITIES EXCHANGE COMMISSION
                             Washington, D.C. 20549

-------------------------------------------------------------------------------


                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
                                (Amendment No. )

                            GROUP 1 AUTOMOTIVE, INC.
                            ------------------------
                                (Name of Issuer)


                     Common Stock, $.01 par value per share
                ------------------------------------------------
                         (Title of Class of Securities)


                                    398905109
                              ---------------------
                                 (CUSIP Number)


                                January 4, 2008
                              ---------------------
             (Date of Event which Requires Filing of this Statement)


Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

                             [ ]     Rule 13d-1(b)

                             [X]     Rule 13d-1(c)

                             [ ]     Rule 13d-1(d)

* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).


                          Continued on following pages
                               Page 1 of 12 Pages
                             Exhibit Index: Page 11







                                 SCHEDULE 13G

CUSIP No.: 398905109                                        Page 2 of 12 Pages
------------------------------------------------------------------------------
1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        ANCHORAGE CAPITAL MASTER OFFSHORE, LTD.
        98-0418059
------------------------------------------------------------------------------
2.      Check the Appropriate Box if a Member of a Group

        (a) [ ]

        (b) [X]
------------------------------------------------------------------------------
3.      SEC Use Only
------------------------------------------------------------------------------
4.      Citizenship or Place of Organization

        Cayman Islands
------------------------------------------------------------------------------
                   5.       Sole Voting Power                  1,969,100
Number of          -----------------------------------------------------------
Shares             6.       Shared Voting Power                0
Beneficially       -----------------------------------------------------------
Owned by Each      7.       Sole Dispositive Power             1,969,100
Reporting          -----------------------------------------------------------
Person With        8.       Shared Dispositive Power           0
------------------------------------------------------------------------------
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,969,100
------------------------------------------------------------------------------
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
------------------------------------------------------------------------------
11.     Percent of Class Represented by Amount in Row (9)

        8.6% based on 22,777,750 shares outstanding as of October 31, 2007.
------------------------------------------------------------------------------
12.     Type of Reporting Person:

        OO




                                 SCHEDULE 13G

CUSIP No.: 398905109                                        Page 3 of 12 Pages
------------------------------------------------------------------------------
1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        ANCHORAGE ADVISORS, L.L.C.
        20-0042271
------------------------------------------------------------------------------
2.      Check the Appropriate Box if a Member of a Group

        (a) [ ]

        (b) [X]
------------------------------------------------------------------------------
3.      SEC Use Only
------------------------------------------------------------------------------
4.      Citizenship or Place of Organization

        Delaware
------------------------------------------------------------------------------
                   5.       Sole Voting Power                  1,969,100
Number of          -----------------------------------------------------------
Shares             6.       Shared Voting Power                0
Beneficially       -----------------------------------------------------------
Owned by Each      7.       Sole Dispositive Power             1,969,100
Reporting          -----------------------------------------------------------
Person With        8.       Shared Dispositive Power           0
------------------------------------------------------------------------------
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,969,100
------------------------------------------------------------------------------
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
------------------------------------------------------------------------------
11.     Percent of Class Represented by Amount in Row (9)

        8.6% based on 22,777,750 shares outstanding as of October 31, 2007.
------------------------------------------------------------------------------
12.     Type of Reporting Person:

        OO, IA




                                 SCHEDULE 13G

CUSIP No.:398905109                                         Page 4 of 12 Pages
------------------------------------------------------------------------------
1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        ANCHORAGE ADVISORS MANAGEMENT, L.L.C.
        20-0042478
------------------------------------------------------------------------------
2.      Check the Appropriate Box if a Member of a Group

        (a) [ ]

        (b) [X]
------------------------------------------------------------------------------
3.      SEC Use Only
------------------------------------------------------------------------------
4.      Citizenship or Place of Organization

        Delaware
------------------------------------------------------------------------------
                   5.       Sole Voting Power                  1,969,100
Number of          -----------------------------------------------------------
Shares             6.       Shared Voting Power                0
Beneficially       -----------------------------------------------------------
Owned by Each      7.       Sole Dispositive Power             1,969,100
Reporting          -----------------------------------------------------------
Person With        8.       Shared Dispositive Power           0
------------------------------------------------------------------------------
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,969,100
------------------------------------------------------------------------------
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
------------------------------------------------------------------------------
11.     Percent of Class Represented by Amount in Row (9)

        8.6% based on 22,777,750 shares outstanding as of October 31, 2007.
------------------------------------------------------------------------------
12.     Type of Reporting Person:

        OO, HC





                                 SCHEDULE 13G

CUSIP No.: 398905109                                        Page 5 of 12 Pages
------------------------------------------------------------------------------
1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        ANTHONY L. DAVIS
------------------------------------------------------------------------------
2.      Check the Appropriate Box if a Member of a Group

        (a) [ ]

        (b) [X]
------------------------------------------------------------------------------
3.      SEC Use Only
------------------------------------------------------------------------------
4.      Citizenship or Place of Organization

        United States of America
------------------------------------------------------------------------------
                   5.       Sole Voting Power                  1,969,100
Number of          -----------------------------------------------------------
Shares             6.       Shared Voting Power                0
Beneficially       -----------------------------------------------------------
Owned by Each      7.       Sole Dispositive Power             1,969,100
Reporting          -----------------------------------------------------------
Person With        8.       Shared Dispositive Power           0
------------------------------------------------------------------------------
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,969,100
------------------------------------------------------------------------------
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
------------------------------------------------------------------------------
11.     Percent of Class Represented by Amount in Row (9)

        8.6% based on 22,777,750 shares outstanding as of October 31, 2007.
------------------------------------------------------------------------------
12.     Type of Reporting Person:

        IN, HC




                                 SCHEDULE 13G

CUSIP No.: 398905109                                        Page 6 of 12 Pages
------------------------------------------------------------------------------
1.      Names of Reporting Persons.

        I.R.S. Identification Nos. of above persons (entities only).


        KEVIN M. ULRICH
------------------------------------------------------------------------------
2.      Check the Appropriate Box if a Member of a Group

        (a) [ ]

        (b) [X]
------------------------------------------------------------------------------
3.      SEC Use Only
------------------------------------------------------------------------------
4.      Citizenship or Place of Organization

        Canada
------------------------------------------------------------------------------
                   5.       Sole Voting Power                  1,969,100
Number of          -----------------------------------------------------------
Shares             6.       Shared Voting Power                0
Beneficially       -----------------------------------------------------------
Owned by Each      7.       Sole Dispositive Power             1,969,100
Reporting          -----------------------------------------------------------
Person With        8.       Shared Dispositive Power           0
------------------------------------------------------------------------------
9.      Aggregate Amount Beneficially Owned by Each Reporting Person

        1,969,100
------------------------------------------------------------------------------
10.     Check if the Aggregate Amount in Row (9) Excludes Certain Shares
        (See Instructions)

        [  ]
------------------------------------------------------------------------------
11.     Percent of Class Represented by Amount in Row (9)

        8.6% based on 22,777,750 shares outstanding as of October 31, 2007.
------------------------------------------------------------------------------
12.     Type of Reporting Person:

        IN, HC




                                                            Page 7 of 12 Pages


Item 1(a).   Name of Issuer:

             Group 1 Automotive, Inc. (the "Issuer").

Item 1(b).   Address of Issuer's Principal Executive Offices:

             950 Echo Lane, Suite 100, Houston, TX 77024.

Item 2(a).   Name of Person Filing:

             This Statement is filed on behalf of each of the following  persons
(collectively, the "Reporting Persons"):

             i) Anchorage Capital Master Offshore, Ltd. ("Anchorage Offshore");

             ii)Anchorage Advisors, L.L.C. ("Advisors");

             iii)Anchorage Advisors Management, L.L.C. ("Management");

              iv)Anthony L. Davis ("Mr. Davis"); and

              v) Kevin M. Ulrich ("Mr. Ulrich").

             This statement  relates to Shares (as defined  herein) held for the
account of Anchorage  Offshore.  Advisors is the investment advisor to Anchorage
Offshore.  Management is the sole managing member of Advisors.  Mr. Davis is the
President of Advisors and a managing member of Management, and Mr. Ulrich is the
Chief Executive Officer of Advisors and the other managing member of Management.

Item 2(b).   Address of Principal Business Office or, if None, Residence:

             The  address  of the  principal  business  office  of  each  of the
Reporting Persons is 610 Broadway, 6th Floor, New York, NY 10012.

Item 2(c).   Citizenship:

             1) Anchorage Offshore is a Cayman Islands exempted company
incorporated with limited liability;

             2) Advisors is a Delaware limited liability company;

             3) Management is a Delaware limited liability company;

             4) Mr. Davis is a citizen of the United States of America; and

             5) Mr. Ulrich is a citizen of Canada.



                                                            Page 8 of 12 Pages


Item 2(d).   Title of Class of Securities:

             Common Stock, $.01 par value per share (the "Shares")

Item 2(e).   CUSIP Number:

             398905109

Item 3.      If This Statement is Filed Pursuant to ss.ss.240.13d-1(b) or
             240.13d-2(b) or (c), Check Whether the Person Filing is a:

             This Item 3 is not applicable.

Item 4.      Ownership:

Item 4(a)    Amount Beneficially Owned:

             As of the date hereof,  each of the Reporting Persons may be deemed
beneficial owner of 1,969,100 Shares.

Item 4(b)    Percent of Class:

             The number of Shares of which the  Reporting  Persons may be deemed
to be the beneficial owner constitutes  approximately  8.6% of the total number
of Shares outstanding (based upon information provided by the Issuer in its most
recently-filed  quarterly  report on Form  10-Q,  there were  22,777,750  shares
outstanding as of October 31, 2007).

Item 4(c)    Number of Shares of which such person has:

Anchorage Offshore:
-------------------

(i) Sole power to vote or direct the vote:                             1,969,100

(ii) Shared power to vote or direct the vote:                                  0

(iii) Sole power to dispose or direct the disposition of:              1,969,100

(iv) Shared power to dispose or direct the disposition of:                     0

Advisors:
---------

(i) Sole power to vote or direct the vote:                             1,969,100

(ii) Shared power to vote or direct the vote:                                  0

(iii) Sole power to dispose or direct the disposition of:              1,969,100

(iv) Shared power to dispose or direct the disposition of:                     0

Management:
-----------

(i) Sole power to vote or direct the vote:                             1,969,100

(ii) Shared power to vote or direct the vote:                                  0

(iii) Sole power to dispose or direct the disposition of:              1,969,100






                                                            Page 9 of 12 Pages


(iv) Shared power to dispose or direct the disposition of:                     0


Mr. Davis:
----------

(i) Sole power to vote or direct the vote:                             1,969,100

(ii) Shared power to vote or direct the vote:                                  0

(iii) Sole power to dispose or direct the disposition of:              1,969,100

(iv) Shared power to dispose or direct the disposition of:                     0

Mr. Ulrich:
-----------

(i) Sole power to vote or direct the vote:                             1,969,100

(ii) Shared power to vote or direct the vote:                                  0

(iii) Sole power to dispose or direct the disposition of:              1,969,100

(iv) Shared power to dispose or direct the disposition of:                     0


Item 5.      Ownership of Five Percent or Less of a Class:

             This Item 5 is not applicable.

Item 6.      Ownership of More than Five Percent on Behalf of Another Person:

             This Item 6 is not applicable.

Item 7.      Identification and Classification of the Subsidiary Which Acquired
             the Security Being Reported on By the Parent Holding Company:

             This Item 7 is not applicable

Item 8.      Identification and Classification of Members of the Group:

             See disclosure in Item 2 hereof.

Item 9.      Notice of Dissolution of Group:

             This Item 9 is not applicable.

Item 10.     Certification:

             By signing below each of the Reporting  Persons  certifies that, to
the best of their  knowledge and belief,  the securities  referred to above were
not  acquired and are not held for the purpose of or with the effect of changing
or influencing the control of the issuer of the securities and were not acquired
and are not  held in  connection  with or as a  participant  in any  transaction
having that purpose or effect.





                                                           Page 10 of 12 Pages


                                   SIGNATURE

         After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete
and correct.

                                ANCHORAGE CAPITAL MASTER OFFSHORE LTD.
Date: January 14, 2008
                                By:      /s/ Kevin M. Ulrich
                                         ---------------------------------------
                                Name:    Kevin M. Ulrich
                                Title:   Director

Date: January 14, 2008          ANCHORAGE ADVISORS, L.L.C.

                                By:      Anchorage Advisors Management, L.L.C.,
                                         its Managing Member

                                         By:     /s/ Anthony L. Davis
                                                 -------------------------------
                                         Name:   Anthony L. Davis
                                         Title:  Managing Member

Date: January 14, 2008          ANCHORAGE ADVISORS MANAGEMENT, L.L.C.

                                By:      /s/ Anthony L. Davis
                                         ---------------------------------------
                                Name:    Anthony L. Davis
                                Title:   Managing Member

Date: January 14, 2008          ANTHONY L. DAVIS

                                /s/ Anthony L Davis
                                ------------------------------------------------

Date: January 14, 2008          KEVIN M. ULRICH

                                /s/ Kevin M. Ulrich
                                ------------------------------------------------





                                                           Page 11 of 12 Pages

                                 EXHIBIT INDEX


Ex.                                                                    Page No.
--                                                                     --------

A    Joint Filing Agreement, dated January 14, 2008 by and
     among Reporting Persons...........................                     12





                                                           Page 12 of 12 Pages




                                   EXHIBIT A

                            JOINT FILING AGREEMENT

             The  undersigned  hereby  agree that the  statement on Schedule 13G
with respect to the Common Stock of Group 1 Automotive, Inc. dated as of January
14, 2008 is, and any amendments thereto  (including  amendments on Schedule 13D)
signed  by each of the  undersigned  shall  be,  filed on  behalf  of each of us
pursuant to and in accordance  with the  provisions  of Rule 13d-1(k)  under the
Securities Exchange Act of 1934, as amended.


                                ANCHORAGE CAPITAL MASTER OFFSHORE LTD.
Date: January 14, 2008
                                By:      /s/ Kevin M. Ulrich
                                         ---------------------------------------
                                Name:    Kevin M. Ulrich
                                Title:   Director

Date: January 14, 2008          ANCHORAGE ADVISORS, L.L.C.

                                By:      Anchorage Advisors Management, L.L.C.,
                                         its Managing Member

                                         By:     /s/ Anthony L. Davis
                                                 -------------------------------
                                         Name:   Anthony L. Davis
                                         Title:  Managing Member

Date: January 14, 2008          ANCHORAGE ADVISORS MANAGEMENT, L.L.C.

                                By:      /s/ Anthony L. Davis
                                         ---------------------------------------
                                Name:    Anthony L. Davis
                                Title:   Managing Member

Date: January 14, 2008          ANTHONY L. DAVIS

                                /s/ Anthony L Davis
                                ------------------------------------------------

Date: January 14, 2008          KEVIN M. ULRICH

                                /s/ Kevin M. Ulrich
                                ------------------------------------------------