SOURCE: Sparta Commercial Services, Inc.

March 14, 2008 11:26 ET

Sparta Commercial and LS Motorsports Announce Consumer Financing Launch

NEW YORK, NY--(Marketwire - March 14, 2008) - Sparta Commercial Services, Inc. (OTCBB: SRCO) and LS Motorsports, the Houston-based distributor of Diamo, Italjet, and Fisher powersports vehicles, today announced the launch of a custom consumer financing and leasing program for all LS Motorsports brands.

The program will enable LS Motorsports retail dealers to offer a traditional type of installment loan product, or a consumer lease, to their customers who want to acquire any of the models of scooters, motorcycles, or all-terrain-vehicles carrying any of the LS Motorsports brands.

Commenting on the launch of the new program, Anthony Havens, Sparta's Chairman and CEO, said, "We're very enthusiastic about this new relationship with LS Motorsports, one of the most highly regarded and rapidly growing companies in their sector of the powersports market. Until now, consumers who wanted a Diamo, Italjet, or Fisher could only rely on their personal major credit cards, or some revolving charge program, in order to finance their purchase, both of which typically carry higher interest rates than the new LS Motorsports program."

Adding to Havens' comments, Mathu Solo, President and CEO of LS Motorsports, said, "This is a great opportunity to offer our dealers and consumers an option to finance their purchase. The program offered by Sparta is a very simple but straightforward program that the consumer will appreciate. By offering our dealers a consumer financing option they can not only increase their vehicle sales but also increase their sales of bolt on accessories which can also be financed. We are very pleased with the broader array of customers that will qualify with this program and the more attractive rates we can offer through Sparta."

LS Motorports has an extensive dealer network in every state across the USA offering one or more of the LS Motorsports brands.

Havens concluded his comments, saying, "We think that the smaller vehicle segment of the market has been underserved by most lenders in the industry, and we believe that with the growth potential that we're seeing in this sector, Sparta's support of LS Motorsports makes extremely good business sense."

About Sparta Commercial Services:

Sparta Commercial Services, Inc. (www.spartacommercial.com) is an Internet-based acceptance (sales finance) and leasing company dedicated exclusively to the powersports industry, concentrating on motorcycles over 600cc, 4-stroke all-terrain vehicles, and select scooters through our programs for manufacturers, distributors, and dealers. Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services.

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