Auto Industry Woes? Not For Everyone: Zag Raised $32.6 Million

Santa Monica, California based Zag , an auto-buying service that lets people buy cars at a discount through affinity organizations like AAA, has raised a monster round of financing - $32.6 million. The round was led by USAA , a financial organization for U.S. military personnel with 6.4 million members. USAA has been an affinity partner of Zag's since 2007 - 22,000 USAA members have purchased cars through the Zag service, the company says, saving them $115 million v. MSRP. Zag was founded by Scott Painter , a long time auto-industry guy. Painter also founded True Car , which launched at TechCrunch50 in 2008.