BLYTHEWOOD, S.C. (news agencies) — Volkswagen-backed Scout Motors is making a massive bet in the electric SUV market with a carefully cultivated experience that will allow some customers to buy the company’s vehicle in minutes on an app and then use it to handle everything after from repairs to updates and upgrades.
But without some help from lawmakers, that will be impossible in South Carolina, where the company is pouring billions into its new auto plant and a Scout Motors experience like BMW’s test track in Greer.
In a world where almost everything can be bought online, automobiles remain an exception. Supporters of the dealership model say the experience allows buyers to compare prices across several businesses.
Unlike a pair of pants, where color, style and size are about the only concerns, buying a car involves financing, state registration, taxes, regulations — and often a test drive.
South Carolina is one of about two dozen states that ban manufacturers from selling vehicles directly to consumers and instead require all new autos be purchased through a dealer. Scout would like to see that practice changed nationwide for all EV makers and figured it could start in its new backyard.
South Carolina also bans manufacturers from owning their own service centers, which means anyone who wants to own a Scout SUV must travel to another state to have it repaired or serviced.
People who back the dealership structure said online sales could lead to carmakers raising their own prices with less competition.
The dealership structure requires local business owners to back what they sell and assure buyers get quality service on their vehicles. Auto dealers often have close ties to their communities and cities could lose one of their biggest businesses and heftiest taxpayers.
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