SOURCE: Sparta Commercial Services, Inc.

February 13, 2007 10:38 ET

Sparta Commercial Enters Municipal Leasing Market

Nationwide Police Motorcycle Leasing Is Company's Latest Innovation

NEW YORK, NY -- (MARKET WIRE) -- February 13, 2007 -- Sparta Commercial Services, Inc. (OTCBB: SRCO), the New York-based financial services company exclusively dedicated to the powersports industry, today announced the launch of a new Municipal Leasing Program designed expressly to meet the needs of law enforcement agencies throughout the U.S. Sparta estimates that the municipal market for leases of law enforcement motorcycles exceeds $200 million annually, based upon extensive discussions that the company conducted among Harley-Davidson, Honda, and BMW dealers, with those brands being the most prominent in the municipal environment.

According to Anthony Havens, Sparta's CEO, "The overwhelming number of city, county, and state agencies that rely heavily on the use of motorcycles for their routine law enforcement activities represents an outstanding business opportunity for us.

"We discovered that most of these agencies have historically been purchasing these vehicles with few, if any, alternatives, so we developed a way for governmental organizations to acquire the motorcycles they need through a program with great flexibility, and reduce their capital outlays at the same time. Clearly, that's a desirable option at a time when budgetary constraints are so common."

Sparta has also determined that, given the seasonal motorcycle usage of many jurisdictions, and the significant mileage that others accrue, the short-term, 12 to 60 month leases available through the Municipal Lease program offer the greatest flexibility to the various departments.

Havens then continued, "We're particularly enthusiastic about this program and the early response among dealers who do business with municipalities has been outstanding. We fully expect that the Municipal Leasing Program will be an important part of our overall business, enhancing our consumer leasing and retail installment loan activities, and our other special programs, and will again demonstrate that our business model -- exclusively dedicated to the powersports industry -- is one that can achieve great success for the company and our investors."

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, amount of, obtaining and satisfying terms 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