Auto Leasing Troubles Affect Consumers and Dealers

How Auto Leasing Troubles Affect Consumers and Dealers: Zag CEO Scott Painter Available Immediately to Discuss

August 01, 2008 - Zag, Inc.:

WHAT: News that major automakers and leading banks are dropping or limiting popular auto leasing programs affects parties on both sides of the auto transaction. Zag CEO and auto industry pioneer Scott Painter is available immediately to discuss how consumers and dealers should respond.

For Consumers
It's understandable that consumers would feel a little vulnerable these days: uncertainty about their auto financing options, and the fear of being stuck with a gas-guzzler, are just a few possible reasons. What they can do:

-- Look to membership based organizations with special car-buying programs, like AAA, USAA, credit unions and others. In these trusted organizations consumers find an advocate using group buying power to offer members lower prices on new cars and a better buying experience overall.

-- Educate themselves about their options: there's a wealth of car and financing information online, and there are dealers today that are making the buying process easier by giving guaranteed prices upfront and improving the overall dealership experience.

For Auto Dealers

Dealers are coping with a struggling industry, sluggish economy and belt-tightening consumers. It's more important than ever for dealers to streamline costs and find ways to boost volume. Painter just published a some provocative ideas on this very subject, in a white paper titled, "Long Live New-Car Profitability," available at http://www.zag.com. He can address this from a variety of angles. Here's a snapshot:

-- Eliminate the haggle to steal customers from competitors: abandon the "come on down" approach, and instead offer bottom-line prices to consumers upfront, while they're researching new cars online.

-- As consumers shift from leasing to buying, be the dealer that makes the process easy and enjoyable for them. Eliminate the commissioned sales force and shift to "concierge mode" - which will change the often-contentious sales relationship to one based on trust.

WHO: Scott Painter, founder and CEO of Zag, Inc. (www.zag.com). Painter pioneered the fledgling online car-buying sector six years ago with the launch of CarsDirect.com. He was instrumental in bringing car shopping online and is credited with being the first to introduce upfront pricing on the Internet.

His latest venture, 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. Its partners give Zag a combined total audience of more than 100 million members/consumers. Zag is fully operational for 65 percent of U.S. households and services more than 93 percent of in-market customers. Zag has made 1 million introductions since inception - meaning 1 million consumers have received a guaranteed upfront price on a car in writing.

Zag is based in Santa Monica, Calif.


WHEN:   Available immediately for an interview.

HOW: To speak with Scott Painter, contact:

Contacts

Edge Communications, Inc.
Ken Greenberg, 818-990-5001
ken@edgecommunicationsinc.com