by Scout Granted Direct Sales License in Colorado
The American automotive brand Scout has achieved a significant victory in the state of Colorado, overcoming a regulatory obstacle on its development path. The local Motor Vehicle Dealer Board approved the company’s application for a dealer license. This decision allows Scout to bypass the traditional franchising system and sell vehicles directly to customers.
This step is particularly significant for a new manufacturer whose direct-to-consumer sales model has faced resistance from some industry representatives.
License Details and Dealer Opposition
The license, valid until October 31, 2026, allows the Volkswagen Group-backed brand to sell new, used, and wholesale vehicles throughout Colorado. The question of how many physical locations the company plans to open in the state remains open.
This decision places Scout alongside brands like Tesla, Rivian, and Lucid, which also utilize a regulatory loophole in Colorado for direct sales. This practice has repeatedly caused concern among associations representing traditional dealers.
One of the most vocal opponents was Colorado Automobile Dealers Association CEO Matthew Groves. He opposed granting the license to Scout, citing the company’s financial ties to the Volkswagen Group. Groves noted that the association could challenge the decision in court but also added that they could simply “let Scout into the market and see if it can swim.”
Board Decision and Scout’s Position
In approving Scout’s application, the Colorado Motor Vehicle Dealer Board ruled that Scout is not a manufacturer of the same line as Volkswagen, Audi, or Porsche. Scout’s Vice President of Commercial Operations, Cody Tacker, is naturally pleased with this decision.
Despite repeated attempts by dealer lobbyists to unfairly prohibit Colorado consumers from choosing how to buy their cars, today’s Board decision guarantees that we can continue moving forward with our business plans to invest in Colorado, employ local workers, and provide a modern, customer-focused experience for thousands of future Scout owners in the state.
Brand’s Future Plans
It is currently unknown whether Scout has obtained a dealer license in any other state. California remains a priority market. The company has been trying to gain approval there for a year now, as the market’s potential for it is likely limitless.
Production of the first Scout vehicles—the Terra pickup and Traveler SUV—is scheduled to begin in 2027 at a new plant near Columbia, South Carolina.
Obtaining the license in Colorado not only opens a specific market but also sets an important precedent for Scout in its dealings with dealer networks across the country. The success or failure of this sales model in the state could significantly impact the brand’s strategy in other regions, especially key ones like California. It also continues the global debate about the future of automotive distribution between traditional franchising models and direct manufacturer sales.
