USAA discontinues digital car buying services

Jeannette E. Garcia
USAA discontinues digital car buying services

San Antonio based USAA Federal Savings Bank, a subsidiary of USAA, will discontinue its car buying services and its 13-year relationship with Santa Monica, California-based automobile eCommerce company TrueCar, Inc. (NASDAQ: TRUE), according to a statement released by TrueCar before its earnings call on Feb. 20. This transition agreement will be active through Sept. 30, in which USAA will pay a $20 million transition services fee to TrueCar, while also continuing revenue share that will remain the same as the previous agreement. The revenue shares include an undisclosed amount for each USAA member sale; for each trade-in or sale of a used vehicle by a member in which they did not purchase a vehicle from TrueCar; as well as a customized fee for sales from an original equipment manufacturer such as BMW North America LLC, Fiat Chrysler Automobiles, Mercedes, Volvo, Audi and Nissan, according to documents filed by TrueCar to the U.S. Securities and Exchange Commission.