The closures come after city officials investigated the transportation of dangerous used vehicles in and out of the District.
Many of the dangerous vehicles were purchased by dealers at out-of-state auctions, officials said. The dealers then stored the vehicles illegally in D.C. before sending them along the East Coast or overseas.
Besides the 23 dealerships expected to close in the next two weeks, 17 more are under investigation and could be closed. Three other used car dealerships were closed earlier this month, officials said.