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.

Scout Traveler Concept

Photo by: Scout Motors

Kevin Williams

By: Kevin Williams

Oct 24, 2024 at 7:22pm ET

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The Scout Motors Terra and Traveler are expected to launch in 2027.
Scout's SUVs will be available at a direct-to-consumer factory store, eschewing the traditional dealership model.
These models are expected to start under $60,000 when they officially go on sale.

I admit I was skeptical of Volkswagen’s ability to revive a familiar and forgotten name, but it looks like they’re hitting it right on the money here. The Scout Traveler and Terra may technically only be concepts, but they’re damn good ones with iconic styling, strong capability, and relatively accessible pricing. So long as Scout can back up that dope styling with good quality and capability, they just might be able to do the damn thing.

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.”

More Scout Info

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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.

Gallery: Scout Traveler SUV And Terra Pickup Concepts

Scout Traveler Concept

Scout Traveler Concept Scout Terra Concept

Source: Scout Motors

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.

What do you think?

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

Contact the author: kevin.williams@insideevs.com.

More Scout Motors News

Scout Motors Livestream Debut: Watch It Live Here

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