Saga is running a scheme called Saga Car Direct supplying cars from seven different manufacturers at discounted fixed prices through VELO, with a range of finance options.
VELO chairman and chief executive Nigel Stephens said: 'We have negotiated substantial discounts from seven manufacturers to provide the affinity group.
'People trust Saga - it has 1.3 million members, and more than half of them take out motor insurance with Saga.
'The scheme is aimed at trying to assist Saga members who may be recently bereaved and want to change to a smaller car. Our target this year is between 2,000 and 3,000 cars.
'We have looked at affinity groups in the past and few people have tried it.
'This one works because of the loyalty of members to the brand. We are pleased with the way it's running and are looking at some other affinity groups.'