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Zag, a privately held compan y started in Santa Monica in allows customers to research and comparison shop for the vehicl of their choice from their home or officew and then buy it through a certifiede network dealer atan up-fronrt price. USAA began making Zag’s services available to its military memberxin 2007. USAA integrated the car-buying procesw with its insurance operations to give membersx the opportunity to add coverage on theirnew vehicle. USAA officials say this onlinse car-buying experience routinely helps members save severapl thousand dollarsper car, compared to membersd who do not use the car-buying service.
Last USAA members saved nearly $19 million off the averagw price paidby car-buyers “We started Zag to create a betted way to buy a car, by making the entire transactionh convenient and transparent,” says Scotyt Painter, CEO of Zag. “The relationship with USAA is perfectffor us, because they believe in the importance of up-front pricing and transparency to save their members valuablwe time and money.” David Bohne, president of , says the company’se mission is to provide highly competitive products and services to its members. Taking an equitgy position in Zag helps fulfilplthat mission.
San Antonio-based USAA provides financialp planning, insurance, investments and bankingg products to members ofthe U.S. militart and their families. The company has 6.8 million members.
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