SOURCE: Sparta Commercial Services, Inc.

August 11, 2008 09:45 ET

Rising Fuel Prices and Recession Fears Spur Nationwide Interest in Motorcycles and Scooters

PowerSports Business Says First Half Scooter Sales up Sixty Five Percent; Survey Indicates More People Are Considering Motorcycles and Scooters Due to Rising Gas Prices

NEW YORK, NY--(Marketwire - August 11, 2008) - Sparta Commercial Services, Inc. (OTCBB: SRCO), a national provider of consumer finance solutions to the powersports industry, recently announced that it has experienced an increase in consumer applications. Based on conversations with potential borrowers and its existing dealer base, Sparta believes that rising gas prices are prompting an increasing number of consumers to acquire motorcycles and scooters.

A July 21, 2008 article in PowerSports Business reported that first half scooter sales increased by sixty five percent, validating a consumer trend towards more fuel efficient transportation. Other sources published similar reports such as The New York Times', June 6, 2008 article "As Gas Prices Soar, Scooters Grow in Popularity"; and The Wall Street Journal, May 21, 2008 article, "Fuel Efficient Scooter Use Takes Off." In an August 1, 2008 article in PowerSports Business, Yamaha Motor Co. reported that its U.S. retail motorcycle new unit sales grew 12.4 percent compared to a year ago.

"The era of smaller, more fuel efficient vehicles is upon us," commented Anthony Havens, Sparta's CEO. "Until recently, motorcycles and scooters were considered the choice of enthusiasts, or people who were just interested in fun and recreation. But, with gas prices dramatically rising, we believe a growing number of consumers will be interested in buying or leasing motorcycles and scooters for extremely practical reasons. With most motorcycles averaging from 40 to 60 miles per gallon and many scooters averaging up to 70 or more miles per gallon, a lot of people are now interested in acquiring these vehicles for commuting to and from work and for local and mid-distance transportation."

A recent PowerSports Business article released the results of a survey conducted by Consumer Reports National Research Center indicating that more than one-quarter of U.S. consumers are considering purchasing a motorcycle or scooter. Eighteen percent are thinking of buying a motorcycle while 14 percent are contemplating buying a scooter.

"It isn't necessarily that consumers are getting rid of their cars, pickup trucks or SUVs," Havens continued, "rather, it's a case of people recognizing that there are real economical alternatives to the high cost of operating larger vehicles to which we've grown accustomed. Our staff has been hearing a lot of anecdotal commentary from our new customers that strongly reinforces the expectations we've had for over a year that a growing number of people would be moving to motorcycles and scooters because of the increasing price of fuel. With the current average price of regular gas hovering just over $4 a gallon, and, with many analysts predicting continuing record high prices for the foreseeable future, we anticipate continuing interest in powersport vehicles as a direct result of this trend."

About Sparta Commercial Services

Sparta Commercial Services, Inc. (www.spartacommercial.com) is a national provider of financing solutions to the powersports industry. The company is currently the only nationwide full-service, independent, Web-based finance company offering a lease solution combined with the traditional retail purchase contract for the powersports Industry. Headquartered in New York City, with its Dealer Support Group located in Houston, Texas, Sparta offers programs for manufacturers, distributors, and dealers. Sparta provides a full line of financing packages including indirect retail installment sales contracts and direct closed-end leases, as well as related services for individuals, fleets and municipal organizations.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, obtaining, satisfying terms of, and amount of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Contact Information

  • Contact:

    Dick Trotter
    COO
    Sparta Commercial Services, Inc.
    (212) 239-2666

    Investor Relations:

    Mark Moline
    Cinapsys, Inc.
    760-458-4899
    m@cinapsys.com