Automakers Want to Sell DIRECT TO CONSUMER & Dealers Are PISSED | Episode 1104
CarEdge Live
Automakers Want to Sell DIRECT TO CONSUMER & Dealers Are PISSED | Episode 1104 CarEdge Live · Jul 8, 2026
Automakers Want to Sell DIRECT TO CONSUMER & Dealers Are PISSED | Episode 1104

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Automakers Want to Sell DIRECT TO CONSUMER & Dealers Are PISSED | Episode 1104
Company

Scout Motors

Scout Motors is a car company tied to Volkswagen. They’re trying to sell cars straight to buyers instead of going through local car dealerships.

Company

Volkswagen subsidiary

Volkswagen has related companies (subsidiaries). The segment is saying Scout Motors is one of those connected companies, and that’s why this DTC dispute is bigger than just a small startup.

Concept

direct to consumer

Direct-to-consumer means the car company sells the car to you directly, not through a local dealership. Dealerships often don’t like it because they lose sales and related business.

Company

Washington state Auto Dealers Association

The Washington state Auto Dealers Association is a dealer trade group representing franchised car dealers in Washington. In this segment, it’s suing Scout Motors, reflecting how dealer organizations often challenge DTC efforts through state law and franchise rules.

Company

Tesla

Tesla is an electric car company. They’ve been pushing a direct-sales approach, and the segment uses that as an example of what other brands are now trying to do.

Term

EV brand

An EV brand is an automaker identity built around electric vehicles as the primary product line. Here, the host is saying Scout is being resurrected specifically as an EV-focused brand, which often pairs with direct-to-consumer sales strategies.

Place

California

California is mentioned as a state where direct-to-consumer selling may already have been approved. The host uses it as an example of where dealer opposition and state rules intersect.

Place

Colorado

Colorado is brought up as another state that may allow direct-to-consumer car sales. The host also says dealers there are trying to stop Scout’s approach.

Concept

dealer network

A dealer network is the set of local car dealerships a brand uses to sell and support its cars. The hosts are saying some states allow direct sales more easily if a brand doesn’t already have dealerships there.

Concept

customer-centric

Customer-centric means the business is trying to make the buying experience better for the customer. Here, the hosts say dealers may have to be more open and less pushy to keep up.

Concept

too little, too late

“Too little, too late” means the fix might not help because it arrives after people have already moved on. The hosts are wondering if dealers will change in time to compete with direct sales.

Term

legal bills

“Legal bills” means money spent on lawyers and court fights. The hosts are saying some automakers are willing to pay those costs to push through changes to how they sell cars.

Brand

Rivian

Rivian is an EV maker that the hosts say is selling in a more direct way to customers. They’re using it as another example of the direct-sales trend.

Concept

dealer franchise network

This is the traditional setup where local dealerships sell cars under an agreement with the brand. If the brand starts selling directly, those dealers can lose customers and sales.

Brand

Caravana

Carvana is a company that sells cars mostly online instead of making you shop at a traditional dealership. The hosts are bringing it up as proof that this kind of buying experience can pull customers away from dealers.

Term

brand store

A brand store is a retailer location or storefront that sells cars for a specific automaker brand, rather than being a multi-brand dealership. In DTC discussions, brand stores are often part of how automakers try to control the customer experience end-to-end.

Concept

franchise dealer model

The franchise dealer model is the normal setup where local dealerships sell cars for a brand. The host is saying direct-to-consumer threatens that middleman role.

Company

Federal Trade Commission

The Federal Trade Commission is a U.S. agency that helps protect consumers from unfair or misleading business practices. In this segment, it’s being used as an example of pressure forcing the auto industry to change how it advertises and sells.

Term

clean up your act

Here, “clean up your act” means dealerships need to change how they advertise and sell so they follow the rules and treat customers better. It’s basically a warning that the old approach won’t be tolerated.

Term

dealer associations

Dealer associations are groups that represent car dealerships in a region. The host is saying these groups are telling dealers they’ll need to adjust how they operate.

Brand

Carvana

Carvana is a car-selling company that tries to make buying a car mostly online. The point here is that they can sell without the usual dealership sales team running the deal.

Concept

certified dealer partners

“Certified dealer partners” refers to dealerships that are approved by a program or platform to participate in a specific sales process. In this context, the hosts suggest they’re using some approved dealers while still reducing the traditional dealership staffing involved in the sales transaction.

Concept

transparency

Here, “transparency” means being open about the deal—like showing the real price and fees clearly. The host is saying that approach can make the process cheaper and easier.

Concept

affordability crisis

The “affordability crisis” means buying a car has become too expensive for a lot of people. The hosts think simplifying the buying process could help reduce some of the extra cost.

Concept

extinct

They’re using “go extinct” to mean dealerships could lose customers if they don’t offer something valuable. The idea is that the market will change and dealers have to adapt.

Concept

gross commission

“Gross commission” is the salesperson’s pay based on how much profit the dealership makes on the car. So if the profit is higher, the commission is usually higher too.

Concept

factory spiffs

“Factory spiffs” are extra bonuses the automaker pays out when a dealer sells a certain number of cars or meets a goal. They’re like performance incentives on top of normal sales pay.

Concept

sales objectives

“Sales objectives” are the goals a dealership has to hit—like selling a certain number of cars in a time period. If they hit the goals, salespeople may earn extra bonuses.

Concept

personnel-wise

“Personnel-wise” just means “in terms of how many people you need.” The host is saying a simpler, more efficient process could mean fewer staff members involved in each sale.

Company

Slate

Slate is another company the host says dealers will likely sue. It’s part of the point that dealers are pushing back with legal threats.

Term

reinsurance

Reinsurance is insurance that insurance companies buy to reduce their risk exposure. Here, the host claims dealer-sold warranties are “sitting on” reinsurance in Bermuda, meaning the financial risk is spread through an insurance/reinsurance network rather than being held entirely by the seller.

Term

warranty

A warranty is the promise that if something breaks, the company will help pay for repairs. The host is saying dealers’ warranty money is connected to insurance companies behind the scenes.

Place

Bermuda

Bermuda is known for having lots of insurance and reinsurance businesses. The host is using it as an example of where the money and risk for warranties can be handled.

Concept

self-recony going on

The host is basically saying dealers are having to change how they do business because the industry is moving in a new direction. If they don’t adapt, they’ll lose customers.

Term

windows sticker

The window sticker is the paper on the car’s glass that shows key details like the price. It helps you see what the car is supposed to cost before you talk to anyone.

Term

Monroney label

A Monroney label is the official price sticker on a new car. It’s meant to show the car’s price clearly so buyers aren’t guessing what the asking price really is.

Topic

dealer grading

They talk about a system that grades dealerships so you can find better ones. The idea is to avoid wasting time with dealers that add surprise fees or pressure you.

Term

dock fees

Dock fees are extra charges a dealer adds on top of the car’s price. They can feel unfair because they increase what you pay after you thought you had the price figured out.

Term

add-ons

Add-ons are extra items or services the dealer tries to sell along with the car. They can raise the final cost, so it’s important to know exactly what you’re paying for.

Term

bait and switch

Bait and switch is when a deal is advertised one way, but then the salesperson tries to get you into a different (usually more expensive) deal. It’s basically a trick to change what you thought you were buying.

Term

out-the-door pricing

Out-the-door pricing means the final total you’ll pay for the car, including taxes and fees. The point is you can see the real number up front instead of getting surprised at the end.

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