SOURCE: Sparta Commercial Services, Inc.

April 23, 2007 09:30 ET

Sparta Commercial Launches New Powersports Financing Program, Partnering With Fortune 500 Company

NEW YORK, NY -- (MARKET WIRE) -- April 23, 2007 -- Sparta Commercial Services, Inc. (OTCBB: SRCO), the New York-based financial services company exclusively dedicated to the powersports industry, today announced the launch and rollout of a new consumer financing and leasing program in cooperation with one of the nation's largest online consumer lenders.

According to Sparta management, the program was initially beta-tested for over six months, beginning in late July 2006, and, after successfully integrating the allied bank's online electronic processing systems with Sparta's proprietary online iPLUS credit decisioning and contracting platform, the program is now fully automated and launched in 12 states. Another ten states will be added in the second quarter, followed by a national rollout. The program is exclusively designed for consumers who want to purchase or lease virtually any brand of new or used motorcycle.

Commenting on the announcement, Anthony Havens, Sparta's CEO, said, "This is an important development for Sparta, because it establishes a strategic alliance with one of the premier financial services companies in the country, and enables Sparta to dramatically increase its business volume."

The cooperative program will focus on thousands of select consumers who apply for credit online with the Fortune 500 bank each month and, through an automated filtering mechanism that determines certain credit criteria, automatically feed the appropriate applications to Sparta's online iPLUS system.

"We see this cooperative venture," Havens continued, "as a great example of how two financial services providers that have complementary activities can work closely together for their mutual benefit. We're very enthusiastic about the relationship with one of the country's most prominent financial institutions, and, given the early results, we're confident that the program will be highly successful."

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 private label programs for manufacturers' distributors. Sparta provides a full line of financing solutions including indirect retail installment sales contracts and direct closed-end leases, as well as related services including GAP coverage and vehicle service contracts.

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