Scout Motors‘ decision to bypass dealerships and sell directly to consumers has sparked frustration among Volkswagen, Porsche, and Audi dealers, who view it as a competitive threat despite Volkswagen’s claims that Scout Motors operates independently. In today’s episode of Inside Automotive, Sean Johnson, General Manager of Porsche Brooklyn, shares his perspective on the situation and advises how traditional dealerships can compete with direct-to-consumer brands.
Johnson notes that while COVID accelerated online car buying, the dealership model remains deeply ingrained in the car-buying experience. Many consumers still value visiting dealerships for their purchases, despite the growing trend of online convenience. For luxury brands like Porsche, personal connections and curated customer experiences are key differentiators that online models can’t replicate.
To compete with direct-to-consumer brands, Johnson suggests dealerships focus on enhancing customer service and providing unique buying experiences. Porsche Brooklyn is set up like a boutique, and his team adopts a lifestyle-driven approach, creating meaningful connections with clients and delivering tailored experiences that resonate with their customers.
Although Johnson acknowledges a generational shift toward online transactions, he emphasizes that many buyers, especially when issues arise, still prefer the human interaction offered by traditional dealerships.
If Scout Motors’ direct-sales approach proves successful, Johnson predicts it could encourage other automakers to follow suit. However, he believes the substantial investment manufacturers have made in dealership infrastructure may slow the widespread adoption of this model.
"People still want to connect with somebody they can call their guy or gal—to have that direct connection. That’s a little bit more important on our side of it. While there’s convenience in online purchasing, the personal touch is what sets us apart, especially when things aren’t right." – Sean Johnson
