News Release
Contact: Ken Greenberg, for Zag 818-990-5001 ken@edgecommunicationsinc.com
June 30, 2008
USAA’s Online Auto Services Revolutionize Car-Buying Process
Online loan approval and car-buying service streamlines the dealership experience; new program poised to save members average of $1,600 off MSRP
SAN ANTONIO – In a move that saves its members money and delivers a superior car buying experience, USAA, a Fortune 150 financial services company that caters to the military and their families, today announces the official launch of its Online Auto Loan and Car-Buying Service. These new services allow members to handle all the steps of car buying—from picking out the car to financing to arranging insurance—without having to leave the comfort of their homes. This product represents the next step in USAA’s ongoing commitment to providing their members with best-in-class products and services no matter where they are—in the comfort of their home, in a tent in the desert, or on a ship at sea. “Our Online Auto Loan and Car-Buying Service really is a leap into the next generation for consumers,” said David Bohne, President, USAA Federal Savings Bank. “While, in the past, dealerships and other auto sellers have provided some of these services individually, we are able to provide the full complement of services entirely online with the same level of service our members have come to expect from USAA.” USAA has chosen to work with Zag.com to provide a car-buying engine and to establish a premier network of participating dealerships in more than 70 cities across 28 states in the United States. How it Works 1. Members log on to www.usaa.com/auto to get started. They can apply for financing and receive an approval within minutes. There are no papers to sign, because the entire process is electronic. 2. Members then navigate USAA’s car-buying service to find the car of their choice available at dealerships across the country. No more haggling over prices with a dealer – USAA gives you a firm price honored by the dealers in the dealer network across the country. Members save an average of $1,600 off MSRP. 3. Print the loan approval letter and dealer instructions you received on-line and head to the dealership to buy your car.* *Purchasing the car online depends upon e-sign functionality, which is available in most areas throughout the United States.
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Of course, members have the option at any time during the process to visit the dealership to test-drive their potential purchase and examine it in person. But the new online auto services option was created with member convenience in mind. “USAA delivers nothing but the best for its members,” said Scott Painter, CEO of Zag. “They’ve chosen to work with Zag because we share that commitment – and we’ve consistently proven our ability to deliver savings and a better car buying experience. The program allows for greater savings and connects members to dealers committed to a no-hassle process. That’s exactly what USAA members expect.” USAA received an overwhelmingly positive response from their membership during a test of the Online Auto Loan eSign capability and Car-Buying Service. In fact, more than 70K members have used the Online Auto Loan eSign capability and more than 93K members have used the Car-Buying Service to research a vehicle to date. Some have had so much faith in the service that they have purchased one-way train tickets across the country to go pick their new cars up. “It’s by far the easiest car-buying experience I’ve ever had,” said Gary Logeman, a retired Naval officer and USAA member. “I just found my truck at a great price online through USAA, printed out my loan approval, and went and picked it up. Easy as that.”
About USAA USAA, a diversified financial services company, is the leading provider of financial planning, insurance, investments, and banking products to members of the U.S. military and their families. Named by BusinessWeek as Customer Service Champion in 2007 and 2008, USAA provides convenient and accessible financial products to its 6.4 million members. For more information about USAA, or to learn more about membership, visit usaa.com. About Zag Zag (www.zag.com) has created a better way to buy a car. Zag operates a robust auto shopping, research and pricing technology platform that saves buyers money by concentrating group buying power, while providing a better car buying experience by connecting buyers with select dealers that provide upfront discounted pricing and a no-hassle delivery process. Zag provides its platform on a private-label basis to affinity buying groups, such as 14 AAA clubs, Overstock.com and Capital One Auto Finance, for – www.capitaloneautobuying.com. These groups give Zag a combined total audience of more than 60 million members/consumers. Zag is fully operational for 65 percent of U.S. households and serves more than 93 percent of in-market car buyers. Zag's investors include Anthem Venture Partners, Capital One Auto Finance, GRP Partners, Arcturus Capital, Callaway Cars and the Skoll Fund. The company's approach to car buying and selling is garnering awards – Entretech gave Zag its 2008 Entrepreneurship Award for emerging companies, InfoWorld designated Zag's platform as one of the 100 most innovative corporate IT solutions for 2006, and Entrepreneur Magazine named Zag in its 2006 "Hot 100" list of the fastest-growing companies. Zag is based in Santa Monica, Calif. ###