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.

 

[JesseS]

Anytime you purchase the initial launch of most anything you will pay a premium for being a 1st gen owner, just depends on how bad you want to be the first person on the block with a shingle new thing. So saying that my order is in

 

[4sallypat]

Anytime you purchase the initial launch of most anything you will pay a premium for being a 1st gen owner, just depends on how bad you want to be the first person on the block with a shingle new thing. So saying that my order is in

Yes, agree - when I bought the first year, first batch '22 Ford Lightning EV truck, I was facing a slew of Ford dealers marking up the price (ADM) and had to go 2 counties away to find one that will not markup.

And then when I traded in my Lightning to get a '23 Mach E - I also had to travel 40 miles away, passing 7 Ford dealers to get them to sell at MSRP.....

Those were the days....

Now, no more dealer shenanigans...

 

[cmiller]

Good. I am tired of dealing with crappy dealers. They need to go the way of the dodo. They are not actually needed and car companies don't regulate them so they just take advantage of their customers.

 

[Noplacelikeloam]

Dealers had a meaningful purpose a long time ago, you know, before the I-N-T-E-R-N-E-T!

For the same reason we dont need travel agents, we dont need car sales environments filled with people that often know less (facts vs whatever they read in Autocar this week) about the product than the customer.

Sorry, but they just dont add value. Between a little research and planning, they are replaced. Dont even get me started on AI, but it will be the final nail in the coffin. Good riddance.

 

[SpaceEVDriver]

I have purchased a LOT of vehicles and have only ever had one good not terrible experience with a dealer.

When we bought our Lightning I emailed the dealer and asked for a full out-the-door cost, including TT&L in writing. They sent it to me. I then asked for a written offer on my trade-in. After several attempts to call me and me being busy with my job, they finally sent it to me via email. They asked if I would get on the phone with them. I said, "No. I have a job during regular business hours and I can only communicate over email." They obliged.

We did most of the deal over a digital signature service, except a few items that required an in-person signature for some reason. They asked when I would come down to pick up the truck. I said, oh, I'm 2.5 hours one-way; I need you to deliver it. They sent their youngest sales rep up to drop it off and pick up the trade-in. Even with all of that, it still took a few hours for them to finalize the handoff while they were here in-person.

We were frustrated with Rivian's process--they still owe me $1000 because their lease terms weren't what they claimed they would be, but I only learned that after depositing $1000. And that non-transparency is one reason we ended up buying a Lightning instead of an R1T.

I would like to purchase my next vehicle entirely online and would love to not have to speak to anyone except the delivery driver.

The dealer model is antiquated and costly. It provides zero added value to the purchase or long-term care of a vehicle.

 

[Sgt Beavis]

VDub dealers can kiss my ass.
The only downside is that there will be fewer service centers for a decent amount of time. I won't buy anything until they have a service center in the Denver area. I'm pretty sure Scout will have one pretty quickly.

 

[PlantMan]

Maryland law dictates the distributor/dealer model, so Scout will have to build at least 1 showroom just like Tesla did.

 

[astricklin]

Maryland law dictates the distributor/dealer model, so Scout will have to build at least 1 showroom just like Tesla did.

They can do like Tesla does in Texas. Sell the vehicle to you out of state. Then just have service centers wherever they need.

 

[OlyScout]

Having bought and still own a Tesla, it’s good, weird, and terrible. The good is all that it’s hyped to be. No middleman, no hidden or BS fees. The weird is you need to secure your own financing and have a cashier’s check upon taking delivery. Weird having a $60 or $70K check in your wallet, or whatever it’ll cost. Terrible, but because this is Elon, that direct buy means prices can change daily or quarterly. It was cool when I placed my Tesla order on an app and paid $250 using Apple Pay. The next day the price dropped $2,500. Cool that I got the discount. Then a month goes buy and price goes up $1K, but again cool that I’m locked in on lowest price until I take delivery. Now a year has gone buy and Model Y is going to be refreshed so they’re dropping the price of current version and my trade in is now $21K less than I bought. So terrible if Scout does what Tesla does in that regard.

Off topic, it is cool to get over-the-air updates that truly improve the vehicle. And right now I have a 30-day free full self driving trial. It’ll be hard to beat Tesla’s tech, but I’d trade it in (literally) for a vehicle I can appreciate. And here I am, waiting…