SOURCE: Sparta Commercial Services, Inc.

August 05, 2008 10:30 ET

Sparta Announces Higher Than Expected Growth in Online Consumer Credit Applications

NEW YORK, NY--(Marketwire - August 5, 2008) - Sparta Commercial Services, Inc. (OTCBB: SRCO), a leading provider of consumer finance solutions to the powersports industry, announced today that its relationship with an aggregator partner of online consumer credit applications for the acquisition of powersports vehicles has resulted in a much higher than anticipated volume of consumer credit applications being processed by its iPLUS® credit decisioning engine during the last three months.

Anthony Havens, Sparta's CEO, stated, "The significant increase in online consumer credit applications that Sparta is receiving through this aggregator partner validates our investment over the last three years in the development of our iPLUS® credit decisioning software. iPLUS® allows us, on a scalable basis, to process increased volumes of applications without a proportional increase in staffing levels and other operating costs." Havens further stated, "This increased application flow further reinforces the fact that despite the problems in other sectors of the credit markets, consumer interest in acquiring powersports vehicles continues to grow. We attribute this, at least in part, to the growing number of people who are reacting to record high gas prices by choosing motorcycles or scooters as a much more economical way to meet their commuting and local travel needs."

Although most of the company's business is still generated through a nationwide network of authorized retail powersports dealers, Havens further commented that, "We're anticipating that the online portion of our business will continue to contribute to the substantial increase in the value of our overall portfolio."

About Sparta Commercial Services

Sparta Commercial Services, Inc. (www.spartacommercial.com) is a leading 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