Jessica Mendoza

Laws in most states say they have to keep selling through those dealerships.

There's one established automaker, though, that's trying to find a way around this system.

Scout Motors is also fighting dealership laws on a state-by-state basis.

And it's facing blowback, including legal challenges, from some of the 600 VW dealerships in the U.S.,

One in New York is seeking class action status against Volkswagen and Scout.

In that case, the established dealers say that Scout is a Volkswagen company, so it must sell cars through independent franchise dealerships.

Volkswagen of America says it's deeply committed to the dealer franchise sales model.

Scout declined to comment.

And why do dealerships see something like Scout as such a big threat?

And so, just to be clear, is the idea that if you have a new company, you then maybe won't be subject to the laws that, like, require automakers to sell cars only through dealerships?

But even as legacy car companies try to figure out a way to sell directly to consumers, there's another experiment going on that's also chipping away at the traditional dealership model.

After the break, we head back to Carvana's Arizona dealership.

Carvana bought its dealership in Casa Grande just over a year ago.

And since then, sales have been through the roof, though you wouldn't know it from hanging out on the sales floor.

And that's because of the non-traditional way Carvana sells cars.

It's like the introvert's dream or the online shopper's dream.

I never have to interact with anybody.

Carvana's approach has always minimized in-person interactions in the car buying process.

The company started out as an online marketplace for used cars.

In a few clicks, you can pick the car you want, create a financing plan, and close the deal.