This New American Brand Has Overcome a Major Obstacle to Sell Cars Directly to Consumers | Carscoops

      Scout has recently secured the right to sell vehicles directly to consumers in Colorado, bypassing opposition from dealers and initiating a change in sales dynamics within the state.

      Approximately 18 hours ago

      By Brad Anderson

      Scout will sell cars directly to customers in Colorado, despite dealer opposition linked to its association with the Volkswagen Group. The board determined that Scout operates independently from VW, Audi, and Porsche.

      Scout has achieved a significant victory in Colorado, overcoming a regulatory obstacle that represents a pivotal moment in the brand's expansion. The Colorado Motor Vehicle Dealer Board has approved its request to operate as a dealer, granting a license that allows Scout to sell vehicles directly to consumers outside the conventional franchise model.

      This approval is an important milestone for the emerging automaker, whose direct sales strategy has encountered resistance from various industry sectors.

      Details of the License

      The license, which is valid until October 31, 2026, enables the VW-affiliated brand to sell new, used, and wholesale vehicles across Colorado. However, it is still uncertain how many physical locations Scout intends to establish in the state.

      This decision places Scout alongside manufacturers like Tesla, Rivian, and Lucid, all of which have utilized a regulatory loophole in Colorado that permits companies without franchise agreements to sell directly to customers. This exemption has faced criticism, particularly from groups advocating for traditional dealerships.

      Dealers Respond

      One of the leading critics has been Matthew Groves, the executive director of the Colorado Auto Dealers Association, who voiced his concerns about granting Scout the license because of its financial connections to Volkswagen Group.

      While Groves mentioned that the association might contest the decision through legal means, he also suggested a different approach: “or we can just let Scout out to market and see if they can swim.”

      In granting Scout’s application, the Colorado Motor Vehicle Dealer Board concluded that Scout is not a same-line manufacturer as VW, Audi, or Porsche. Cody Thacker, Scout’s vice president of commercial operations, expressed his satisfaction with the ruling.

      “Despite ongoing efforts by dealer lobbyists to unjustly restrict Colorado consumers from choosing how to purchase vehicles, today’s clear approval from the Dealer Board ensures that we can proceed with our business plans to invest in Colorado, hire local workers, and provide a modern, customer-centric experience to many future Scout owners in the state,” he stated.

      Scout's Future Plans

      As reported by Auto News, it has yet to be determined whether Scout has obtained a dealer license in any other states. California is especially a focus, as the company has been striving for approval there over the past year, given the considerable market potential in the state.

      Production of Scout’s inaugural vehicles, the Terra pickup and Traveler SUV, is slated to commence in 2027 at a new factory near Columbia, South Carolina.