NO DEALERS / Direct Sales + Price Transparency = Yesss Thank You!!! 🙌 🙏🏻 👍

[Golfguy]

The Scout Traveler and Terra will be available via a direct-to-customer factory store, just like Tesla and Lucid

This has to be one of the best pieces of news today!

https://insideevs.com/news/738666/scout-direct-to-consumer-sales/

Scout Is Cutting Out Dealers. That's A Big Win For Consumers

The Scout Traveler and Terra will be available via a direct-to-consumer factory store, akin to Tesla or Lucid.

October 24, 2024

But arguably, the most important tidbit about today’s reveal is that Scout’s dealership launch will be a direct-to-consumer, factory-store model akin to Tesla or Lucid. Scout’s press release says that this move is designed to engender trust and transparency. “From reservations and vehicle sales to delivery and service, Scout Motors supports the consumer directly. One company, one app, one login, one experience.”

Specifically, Scout was key to mention how transparent the brand plans to be when it comes to pricing. “From the start, customers will know what they are paying and can expect full price transparency. Vehicle purchase transactions will be completed in minutes,” which is very, very important for this vehicle.

Let’s face it unless Volkswagen and Scout somehow screw up the end result, the Scout looks like a home run. I can easily see both models amassing up a huge backlog of preorders, akin to when the ICE-powered Ford Bronco was initially revealed and released. Yet, unlike the Bronco, there won’t be any pesky dealerships that could add petty and punitive “market adjustments” of thousands of dollars to new vehicles.

That’s important, especially for the launch of a new brand. I know of at least two Ford Bronco hopefuls who “reserved” a truck, only for the dealer to play games in the form of abnormally low trade-in values or markups that weren’t discussed at the time of reservation. The experience was so bad, that it turned them off to the Ford Bronco as a whole. Now that the era of markups and predatory behavior by dealers on that model is over, neither wants to look at the Bronco again.

A direct-to-consumer model isn’t necessarily infallible, though. Elon Musk’s constant price adjustments of the Model 3 and Model Y over the past two years effectively have had the same effect as a market adjustment, hurting both consumer trust and the resale value of its cars. Yet, it does seem like Scout will be far more conservative, and it’ll keep the pricing at sane, predictable levels.

We’ll have more details on Scout’s dealer and sales plan before it officially launches the Terra and Traveler in 2027.

 

[DaveM]

Seriously that's amazing news. Dealership system is for dinosaur era. Hopefully now that a fourth brand (after Tesla, Rivian, Lucid) is going direct-to-customer model, the stubborn states that don't allow it will start to relent!

 

[SHREK]

Honestly..... Cutting out the PROFIT dealers make is a good thing. No Price Gouging. Unlike the Vehicles that are HOT at dealers. FOr one the FORD Maverick at the release. Scumbags were adding $3K to $4K to MSRP. Despicable!!!!!!!!!

 

[astricklin]

Honestly..... Cutting out the PROFIT dealers make is a good thing. No Price Gouging. Unlike the Vehicles that are HOT at dealers. FOr one the FORD Maverick at the release. Scumbags were adding $3K to $4K to MSRP. Despicable!!!!!!!!!

Nah, the profit is just going to go to the manufacturer. They're going to try and sell the vehicle for what the market will pay.

Look at Tesla historical pricing. When the model 3 was introduced , it was only the high trims available at a high cost. Then prices lowered across the board and lower trims were introduced after a while. Then they increased prices throughout 2021 and 2022 as supply was low and demand increasing. Now that supply has caught up to demand, and demand has possibly even decreased a bit, prices have come down.

Legacy manufacturers do the same thing with factory rebates. Before 2020, the typical discount on an f150 was $10k. That dried up in 2021-2023. Now that supply has increased and there are vehicles once again on dealer lots, the rebates are back.
Ford has even adjusted MSRP on EVs mid model year, and reprinted window stickers for ones that were already on dealer lots.

 

[Golfguy]

Of course VW dealers aren't happy about it... no surprise.

https://www.carscoops.com/2024/10/v...cout-confirms-direct-to-customer-sales-model/

VW Dealers Furious As Scout Sells Terra And Traveler Direct To Consumers
The revived brand will handle all sales, production, and servicing of its models and that might rub existing VW dealers the wrong way

Dealerships Prepare for a Legal Battle

Unsurprisingly, this hasn’t gone down well with existing VW dealers. Backed by the National Automobile Dealers Association and the Automotive Trade Association Executives, they’re reportedly gearing up to pursue legal action in an attempt to force Scout to reconsider its direct-to-consumer strategy, Auto News reports.

“Assuming they take this other path, let’s face it, there’s going to be challenges and problems for them virtually everywhere across the country,” said John Devlin, the 2024 chairman of the Automotive Trade Association Executives and CEO of the Pennsylvania Automotive Association. “My counterparts around the country are not just going to roll over.”

Scout’s Independence Gives It Flexibility

The problem for VW dealers is that Scout has been established as an independent company, a move that clears the way for a direct-to-consumer model without conflicting with VW’s franchise dealer network.

“Because of the way the franchise laws are in many states, if this were to be a Volkswagen company, it would be forced to not compete against Volkswagen dealerships,” Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, told Auto News. “But as a standalone company, they are working to get around requiring franchise dealers, period, to carry the Scouts.”

Scout Motors is looking to establish a one-to-one relationship with its customers, directly offering reservations, sales, delivery, and servicing. It adds shoppers will know exactly what they’re paying for with “full price transparency,” and says “vehicle purchase transactions will be completed in minutes.”

Interested buyers will be able to see Terra and Traveler models at dedicated retail spaces across the US. Test drives will also be offered at these sites. Scout Workshops are also being established but the firm notes approximately 80% of repair types can be completed outside of a Scout Workshop, “whether in a driveway or while adventuring.”

 

[nate.rhodes.sc]

Nah, the profit is just going to go to the manufacturer. They're going to try and sell the vehicle for what the market will pay.

Look at Tesla historical pricing. When the model 3 was introduced , it was only the high trims available at a high cost. Then prices lowered across the board and lower trims were introduced after a while. Then they increased prices throughout 2021 and 2022 as supply was low and demand increasing. Now that supply has caught up to demand, and demand has possibly even decreased a bit, prices have come down.

Legacy manufacturers do the same thing with factory rebates. Before 2020, the typical discount on an f150 was $10k. That dried up in 2021-2023. Now that supply has increased and there are vehicles once again on dealer lots, the rebates are back.
Ford has even adjusted MSRP on EVs mid model year, and reprinted window stickers for ones that were already on dealer lots.

You're not wrong.