SOURCE: Zag.com, Inc.

Zag.com, Inc.

March 22, 2010 09:00 ET

100,000 Cars Sold Through Zag-Powered Online Car Buying Programs

Zag-Powered Auto Buying Programs Thriving Amidst Auto Industry Decline -- Zag Looks Ahead as Zag Dealers on Pace to Sell 100,000 Cars in 2010 Alone

SANTA MONICA, CA--(Marketwire - March 22, 2010) -   Zag (www.zag.com), the leading provider of online car buying programs for some of the nation's foremost brands, including USAA, AAA, American Express and Overstock, announced today that Zag Certified Dealers have cumulatively sold over 100,000 new and used vehicles to customers through Zag's car buying programs since launching in 2006. The 100,000 sales milestone as well as Zag raising over $37.4M in venture funding in February 2009 and reaching profitably in August 2009, have been achieved during one of the worst automotive sales declines in history. This is a true testament to the force of the affinity car buying model, which Zag pioneered.

The 100,000th vehicle sold was a 2010 Mercedes-Benz M-Class sold by Mercedes-Benz of Fort Washington in Fort Washington, Pennsylvania. The customer purchased this vehicle from the dealer through the Zag-powered USAA Car Buying Service and saved $8,704(i) off the MSRP. Zag leverages group purchasing power with dealers who provide guaranteed low upfront pricing on fully configured vehicles, all while consumers are still online. To date, consumers have saved over $350 million dollars(ii) off MSRP on cars sold through Zag's multiple car buying programs. 

"The sale of the 100,000th car by Zag dealers through our partners' auto buying programs represents a significant five year milestone for the company," said Scott Painter, Founder/CEO of Zag. "We are very proud of this achievement and are now looking forward to our next milestone as Zag dealers are on pace to sell 100,000 cars in 2010 alone." The U.S. auto industry as a whole was down 21% in 2009 versus 2008, and the 10.4 million new vehicles sold were the lowest in a generation, yet the sales volume through Zag-powered auto buying programs increased 84% in 2009 versus 2008. Zag dealers are also on pace to sell the next 100,000 cars in only 12 months versus 48 months to sell the first 100,000. 

Zag continues to thrive because its platform has aligned the interests of both consumers and dealers, removing the long standing suspicion behind this commonly dreaded interaction by providing consumers with low upfront car prices and a haggle free car buying experience. Consumers save on average nearly $2,000 off of MSRP and affinity consumers report 95% customer satisfaction with their Zag-powered auto buying program. Zag dealers in turn enjoy a steady supply of in-market, ready-to-buy customers from multiple car buying programs, all within the framework of a pay for performance model(iii).

About Zag

Zag (www.zag.com) has created a better way to buy a car. Zag provides online car buying programs for several of the nation's largest brands including USAA, AAA, American Express, Capital One and Overstock. Zag leverages group buying power to provide car shoppers with low, upfront prices and a haggle-free car buying experience from its nationwide network of over 2,800 select car dealers. Over 100,000 new and used cars have been sold by Zag certified dealers through marketing on the Zag programs since the launch of the first program in 2006. Zag was recently named the second fastest-growing company in Los Angeles County by the Los Angeles Business Journal. Zag is based in Santa Monica, CA.

(i) Including incentives
(ii) Including incentives
(iii) In most states

Contact Information

  • Press Contact:
    Shadee Malekafzali
    Media Relations
    Zag.com, Inc.
    Email Contact
    888.446.1439