Consumer Freedom and Scout Motors in South Carolina

[Czernobog]

Another local SC media article on this issue contains quite the headscratcher of:

State Rep. Craig Gagnon, R-Abbeville, is one of the co-sponsors on the bill, but said he has yet to make a decision on whether to support it.

Read more at: https://www.thestate.com/news/politics-government/article299063245.html#storylink=cpy

 

[oldgeeksguide]

There is a little more to that closing fee. They also by law have to charge the same fee to everyone. They can lower their overall price, but they have to charge the same fee to everyone. Some of it is warranted like covering costs for titling, tags, etc. It used to cover paperwork and FedEx fees etc. But, now so much of that is electronic. The fees just never went away. Anyway, the dealer cannot really negotiate on the closing fee because they have to charge it to everyone. But, they can negotiate on the total, out the door price. If you cannot get your bottom line price, just walk like @bwdavis7 said.

Yeah, but when I go to the grocery store, they don’t charge a transportation fee, a packaging fee, a food safety fee, etc. A pet peeve of mine is when a sales rep tries to justify all these tacked on fees when they’re just the cost of doing business for them. It’s just a way to advertise prices much lower than reality.

 

[LastDayScout]

Yeah, but when I go to the grocery store, they don’t charge a transportation fee, a packaging fee, a food safety fee, etc. A pet peeve of mine is when a sales rep tries to justify all these tacked on fees when they’re just the cost of doing business for them. It’s just a way to advertise prices much lower than reality.

Also absolutely true. I think the whole industry needs a reset.

 

[merrelljohnson]

Forum members,

It's great to see all of the activity, enthusiasm, and discussion on the forum. By way of introduction, I serve as the Vice President of Growth at Scout Motors. In a nutshell, I'm responsible for retail strategy, customer experience, and commercial operations.

As many of you likely know, Scout Motors has selected a direct-to-consumer retail model. This means that Scout Motors will sell Scout vehicles to Scout customers. We believe it's the right strategy and, after talking to many consumers, believe it's what the market demands.

We would love nothing more than to build an Experience Center at the factory in Blythewood, South Carolina. From there, we could offer factory tours, driving experiences, product displays, and factory delivery of new vehicles. Unfortunately, antiquated regulations in South Carolina stand in our way.

We hope to get these laws changed and know that many state leaders see it the same way. To start the conversation in South Carolina, I posted the below article to LinkedIn today. I thought all of you should know our logic, vision, and requests of the state as well. Enjoy!

...

From: LinkedIn

The Post & Courier has it right: Scout Motors is proud to manufacture in the Palmetto State and we'd be honored if our brand became synonymous with South Carolina.

Another thing they have right: Scout Motors believes that freedom in car buying should be restored for South Carolina consumers.

Selling vehicles through franchised dealers is exactly the right strategy for some automakers. No doubt, it has the potential to serve the customers of established brands well.

It is equally true that selling vehicles directly to consumers is the best strategy for other automakers, Scout Motors included. Many automotive new entrants have, after reviewing the costs and benefits, made the same decision.

These two business models do not need to be mutually exclusive.

Like in all other industries—where companies and consumers freely decide on the best distribution model, or choose to use both—automotive distribution need not be an all-or-nothing proposition. Economists, academics, consumer protection groups, free market advocates, and federal agencies roundly agree: the consumer and competition are benefitted when the direct sale of automobiles is permitted.

Scout Motors also agrees. Consumers deserve the freedom to choose how they buy a car for many reasons, including:

• Affordability - Eliminating the double marginalization of a middleman lowers the retail price of Scout vehicles by thousands of dollars. This benefits both consumers and Scout Motors. By being within financial reach of more Americans, Scout Motors can achieve higher market share, run our production plant at higher capacities, and employ more South Carolinians.
• Transparency - Consumers are incredibly frustrated at the lack of straightforward pricing in auto buying and servicing. Surprise markups and add-ons have many consumers feeling irate. A direct sales model solves this entirely. Scout customers will always know what they’re paying.
• Customer experience - A direct sales model allows Scout Motors to have one-on-one relationships with our customers. With this, we can create centralized customer accounts, apps, and records that make buying, owning, and servicing Scout vehicles incredibly easy and seamless. Further, only in a direct sales model does Scout Motors maintain the operational flexibility necessary to quickly scale and adjust our national retail network to meet rapidly changing sales and service needs. Finally, we foresee a future in which data privacy and protection becomes a significant consumer concern and purchase driver; in a direct sales model, we can ensure that our customers (and their data) never become the product.
• EV focus - Unlike the EV negativity that now permeates franchised dealers and their sales teams (alas, over 5,000 franchised dealers twice petitioned President Biden to “hit the brakes” on EV sales and 49% of dealer sales staff report being "not excited at all" to sell EVs), a direct sales model allows us to build a sales team that knows our products, understands the litany of benefits offered by EVs, and reliably delivers ambitious monthly sales targets.
• Progress – The basic dealership experience has not changed in the last 75 years. But the world around it has. Consumers expect a modern retail experience that blends in-person and online options. They expect services that leverage and adopt modern technology. Online vehicle purchases completed in minutes, mobile service in your driveway, and over-the-air diagnostics and updates, for example, are just the tip of the iceberg. Customers deserve access to modern technologies and experiences, and Scout Motors plans to provide them through direct sales.

South Carolina consumers, like all American consumers, deserve freedom in choosing how they buy a car.

South Carolina consumers, like all American consumers, deserve affordable vehicles that aren’t touched by a middleman.

South Carolina workers, like all American workers, deserve to be able to buy the products that they manufacture.

And South Carolina citizens, like all American citizens, deserve business friendly policies that generate economic prosperity and that do not attempt to snuff-out new market entrants.

As it stands, because of antiquated regulations kept in place by the dealer lobby, South Carolinians will have to travel to other states to purchase the Scout vehicles that are made in Blythewood, South Carolina. This would be tragic, and an affront to both consumer choice and the free market that South Carolina ordinarily embraces.

But, we’re hopeful change is on the way. South Carolina, its legislature, and its leaders (especially South Carolina Governor's Office and South Carolina Department of Commerce) are visionary on economic development, industrial trends, and the future of transportation. They tackle hard issues when they arise, and I believe this issue will soon get the scrutiny it deserves.

Hi Cody! We got your email. And I certainly reached out to my local Richland County Delegation. Despite the fact that Scout has adamantly seemed closed to the idea of inviting anyone from Richland County (outside of Blythewood) in. Non-profits have been ignored, community members have been ignored.

Now I don’t miss the forest from the trees, because I understand the long term affects of Scout. But it’s going to be hard to get more of the community to support you when Scout have seemingly been so incredibly happy to not reciprocate the welcoming feeling, we have all had for you.

 

[bwdavis7]

You can see the status of the proposed SC Legislation here:

South Carolina Legislature Online - Bill Search by Bill Number

www.scstatehouse.gov

 

[J Alynn]

Hi Cody! We got your email. And I certainly reached out to my local Richland County Delegation. Despite the fact that Scout has adamantly seemed closed to the idea of inviting anyone from Richland County (outside of Blythewood) in. Non-profits have been ignored, community members have been ignored.

Now I don’t miss the forest from the trees, because I understand the long term affects of Scout. But it’s going to be hard to get more of the community to support you when Scout have seemingly been so incredibly happy to not reciprocate the welcoming feeling, we have all had for you.

Can you provide more info? What isn’t Scout doing for everybody else in the area? They been extremely open and transparent so I’m curious what has you and your fellow county members upset? would be nice to provide some background to this statement so people understand

 

[bwdavis7]

But it’s going to be hard to get more of the community to support you when Scout have seemingly been so incredibly happy to not reciprocate the welcoming feeling

What? I obviously missed something. But what can I say? I'm not from Richland County.

 

[LastDayScout]

You can see the status of the proposed SC Legislation here:

South Carolina Legislature Online - Bill Search by Bill Number

www.scstatehouse.gov

Thank you for adding this link.

 

[J Alynn]

Another interesting article that ties again to the desire for DTC new vehicle sales

Your car dealership experience is about to get much, much worse — TheStreet

Hate buying cars? The government is about to make the experience a lot more frustrating.

apple.news

 

[bwdavis7]

Direct sales bill gets a hearing on Wednesday, February 12 in Columbia, South Carolina. We can only hope that the committee and our state legislators realize that they are elected by more consumers in our state than those employed by dealerships. It's time for a change!

 

[eddiet1212]

Direct sales bill gets a hearing on Wednesday, February 12 in Columbia, South Carolina. We can only hope that the committee and our state legislators realize that they are elected by more consumers in our state than those employed by dealerships. It's time for a change!

I hope you are right, but the NADA has deep pockets & an army of lobbyist...

I hate to think that the NADA (more like National Amateur Dodgeball Association) will continue to dodge the DTC model...

 

[Dana]

Hi Cody! We got your email. And I certainly reached out to my local Richland County Delegation. Despite the fact that Scout has adamantly seemed closed to the idea of inviting anyone from Richland County (outside of Blythewood) in. Non-profits have been ignored, community members have been ignored.

Now I don’t miss the forest from the trees, because I understand the long term affects of Scout. But it’s going to be hard to get more of the community to support you when Scout have seemingly been so incredibly happy to not reciprocate the welcoming feeling, we have all had for you.

Hi! What non profits, specifically? I’m curious to what you’re referring to. I don’t live in SC but I have bought two vehicles DTC in states that also don’t allow it. So one vehicle I paid for by sending the money to California and then the car shipped to my home state. The second time I drove to a neighboring state to take delivery. Now my home states absolutely got their sales tax money. But what they lost out on is employing a few more people in a nice building to wash up the new car, add accessories on and to physically hand the car over to me. I’d actually thought I’d like to take delivery in SC if Scout offered that…I hope SC legislators don’t rob hundreds of people from visiting your lovely state as tourists, enjoying SC BBQ!

 

[THil08]

@codythacker is this true? Or is it more made up stuff from media?

S.C. dealers secure victory as lawmakers reject Scout Motors' sales model – E. Sims Floyd, Jr. | SCADA

Sims Floyd Jr., Executive VP of the SCADA, joins us on the latest episode of Inside Automotive to discuss the implications of this decision.

www.cbtnews.com

 

[eddiet1212]

https://scada.org/

Session 126 - (2025-2026)

Printer Friendly
(pdf format)​

H 3777 General Bill, By M.M. Smith, Gagnon, Garvin, Alexander, Grant and Reese
Summary: South Carolina Consumer Freedom Act
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 56-15-45, RELATING TO THE OPERATION OF A DEALERSHIP BY A MANUFACTURER OR FRANCHISOR, SO AS TO PROVIDE THAT AN AUTOMOTIVE MANUFACTURER THAT OWNS OR OPERATES A MANUFACTURING FACTORY OR ASSEMBLY PLANT THAT HAS NEVER HAD DEALER FRANCHISE AGREEMENTS MUST BE ALLOWED TO SELL DIRECTLY TO CONSUMERS TO PROMOTE CONSUMER CHOICE AND MARKET FREEDOM.

The following graphic is a general description of the legislation's status. Users must reference the bill history and the respective journals of the House and Senate for detailed status information.​

View full text

01/16/25	House	Introduced and read first time (House Journal-page 720)
01/16/25	House	Referred to Committee on Labor, Commerce and Industry (House Journal-page 720)
01/16/25	Scrivener's error corrected
01/30/25	House	Member(s) request name added as sponsor: Alexander, Grant, Reese
02/06/25	House	Member(s) request name removed as sponsor: Brewer

South Carolina Legislature Online - Bill Search by Bill Number

www.scstatehouse.gov

 

[cyure]

View attachment 5253

https://scada.org/

Session 126 - (2025-2026)

Printer Friendly
(pdf format)​

H 3777 General Bill, By M.M. Smith, Gagnon, Garvin, Alexander, Grant and Reese
Summary: South Carolina Consumer Freedom Act
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 56-15-45, RELATING TO THE OPERATION OF A DEALERSHIP BY A MANUFACTURER OR FRANCHISOR, SO AS TO PROVIDE THAT AN AUTOMOTIVE MANUFACTURER THAT OWNS OR OPERATES A MANUFACTURING FACTORY OR ASSEMBLY PLANT THAT HAS NEVER HAD DEALER FRANCHISE AGREEMENTS MUST BE ALLOWED TO SELL DIRECTLY TO CONSUMERS TO PROMOTE CONSUMER CHOICE AND MARKET FREEDOM.

The following graphic is a general description of the legislation's status. Users must reference the bill history and the respective journals of the House and Senate for detailed status information.​

View full text

01/16/25	House	Introduced and read first time (House Journal-page 720)
01/16/25	House	Referred to Committee on Labor, Commerce and Industry (House Journal-page 720)
01/16/25	Scrivener's error corrected
01/30/25	House	Member(s) request name added as sponsor: Alexander, Grant, Reese
02/06/25	House	Member(s) request name removed as sponsor: Brewer

South Carolina Legislature Online - Bill Search by Bill Number

www.scstatehouse.gov

Well now what does this mean? Is it completely dead or just dead for now?

 

[J Alynn]

View attachment 5253

https://scada.org/

Session 126 - (2025-2026)

Printer Friendly
(pdf format)​

H 3777 General Bill, By M.M. Smith, Gagnon, Garvin, Alexander, Grant and Reese
Summary: South Carolina Consumer Freedom Act
A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 56-15-45, RELATING TO THE OPERATION OF A DEALERSHIP BY A MANUFACTURER OR FRANCHISOR, SO AS TO PROVIDE THAT AN AUTOMOTIVE MANUFACTURER THAT OWNS OR OPERATES A MANUFACTURING FACTORY OR ASSEMBLY PLANT THAT HAS NEVER HAD DEALER FRANCHISE AGREEMENTS MUST BE ALLOWED TO SELL DIRECTLY TO CONSUMERS TO PROMOTE CONSUMER CHOICE AND MARKET FREEDOM.

The following graphic is a general description of the legislation's status. Users must reference the bill history and the respective journals of the House and Senate for detailed status information.​

View full text

01/16/25	House	Introduced and read first time (House Journal-page 720)
01/16/25	House	Referred to Committee on Labor, Commerce and Industry (House Journal-page 720)
01/16/25	Scrivener's error corrected
01/30/25	House	Member(s) request name added as sponsor: Alexander, Grant, Reese
02/06/25	House	Member(s) request name removed as sponsor: Brewer

South Carolina Legislature Online - Bill Search by Bill Number

www.scstatehouse.gov

That SCADA letter is a joke. They make the best decisions for the people of SC yet they continue funneling money to the members of the legislation to essentially buy their votes. What a crock o S%*#!
Can’t wait for SM final play on this to screw the SC legislation. Truly hope they open shop one mile out of the state in each direction then still agree to turn them over to the buyers at the plant in Blythewood. Then the evil side of me hopes the Scout Group of SC organizes a scout vehicle parade and drives by every VW dealership blowing their horns and saluting the dealerships with middle fingers raised high. Organized crime at its worst!

 

[J Alynn]

That SCADA letter is a joke. They make the best decisions for the people of SC yet they continue funneling money to the members of the legislation to essentially buy their votes. What a crock o S%*#!
Can’t wait for SM final play on this to screw the SC legislation. Truly hope they open shop one mile out of the state in each direction then still agree to turn them over to the buyers at the plant in Blythewood. Then the evil side of me hopes the Scout Group of SC organizes a scout vehicle parade and drives by every VW dealership blowing their horns and saluting the dealerships with middle fingers raised high. Organized crime at its worst!

Hope they all decide to swing in the dealership at the same time to flood their lot so the scout owners can “shop” for their “other” vehicle. Preferably on a Saturday between 10am and 2pm.

 

[J Alynn]

Any chance there’s a business next to every VW dealership that could sell the used Scouts. I realize it might take a few years to have enough product to sell as used (maybe employee vehicles). Make a deal with the Toyota or Honda dealership or whomever is next door to sell all used Scouts. That would irritate the dealerships

 

[Jamie@ScoutMotors]

I'll let Cody chime in on this, but this is propaganda, grandstanding on the part of SCADA.

 

[eddiet1212]

What BS!

"...Advocates on behalf of consumers..."