SOURCE: Sparta Commercial Services, Inc.

July 09, 2008 10:34 ET

Sparta Commercial Services, Inc. Achieves 20% Penetration of Its Target Market

Company's Retail Dealer Network Now Exceeds 2,100 Nationwide

NEW YORK, NY--(Marketwire - July 9, 2008) - Sparta Commercial Services, Inc. (OTCBB: SRCO), a leading provider of consumer finance solutions to the powersports industry, announced today that as of May 31st the company's retail dealer base has reached another significant milestone. As a result of the strong continued growth in sign-ups, Sparta's dealer network now numbers in excess of 2,100, which represents 20% of its target market of 10,000 dealers. According to the 2007 Motorcycle Industry Council Statistical Annual, retail sales of new motorcycles in the United States totaled $10.7 billion in 2006, the most recent year for which statistics are currently available.

According to the Motorcycle Industry Council, there are nearly 14,000 retail powersports dealers in the United States. Sparta provides financing and leasing products for all major brands of street legal motorcycles, a number of semi-custom brands, and several popular brands of scooters.

"Sparta's business model has been, from inception, to provide financing and leasing products to consumers through a nationwide network of powersports dealers that sell motorcycles and select brands of scooters and all-terrain vehicles," commented Anthony Havens, Sparta's CEO.

"We believe that the significant increase in the number of retail dealers who are turning to Sparta for their customers' financing or leasing needs is a direct result of both an effective marketing campaign, and a deeper understanding of the consumer characteristics than most other lenders in the powersports industry. Given the fact that Sparta is dedicated exclusively to this market, our knowledge of consumer preferences and interests has enabled us to tailor our financial services programs in a highly targeted way, and more and more dealers are choosing Sparta for those reasons."

Havens added, "Our proprietary iPLUS® online credit decision and contracting platform is among the fastest and most reliable in the industry. We continue to hear rave reviews from dealers about how simple and accommodating iPLUS is, and how supportive our dealer services group is whenever dealers require assistance. The word of mouth about our commitments to the needs of consumers and dealers is obviously driving the move toward greater reliance on Sparta for financial services, and we're extremely pleased."

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