SOURCE: Sparta Commercial Services, Inc.

November 29, 2010 10:00 ET

Sparta Commercial's Municipal Leasing Program Continues to Grow and Evolve

NEW YORK, NY--(Marketwire - November 29, 2010) - Sparta Commercial Services, Inc. (OTCBB: SRCO) today announced that its Municipal Leasing Program is continuing to grow as the company adds an increasing number of municipalities to the program and expands the types of assets eligible for leasing contracts.

Sparta has completed over $6.5 million in financing with sixty-two jurisdictions in thirteen states. Contract renewals are continuing at a steady pace when initial transactions come to term, as has most recently occurred with the Darke County, OH Sheriff's Office; the Township of Montville, NJ Police Department; the City of Hoover, AL Police Department; and the Miami County, OH Sheriff's Office. 

In addition, Sparta's Municipal Leasing Department is either currently bidding on requests from, or already in discussions with, municipalities in thirteen new states and has a pipeline representing in excess of $10 million in potential contracts. Although there can be no assurances of the number of transactions that will close, the Company expects to go to contract with many in the upcoming fiscal year.

While the Sparta program initially focused on police motorcycles for law enforcement organizations around the country, the types of asset classes have since been expanded to include police cruisers, EMS vehicles, fire equipment, buses, trucks, vans, tactical vehicles, surveillance equipment, and any essential-use equipment utilized by municipal agencies.

Sparta's Municipal Lease Program enables municipalities to avoid the complete upfront cost of their equipment by leasing, rather than purchasing that equipment. By utilizing this method of acquisition, local and state governments can lower their annual budgets and pay the cost of the equipment they require over a scheduled period of time.

Commenting on the continuing growth of Sparta's Municipal Lease Program, Anthony Havens, the company's CEO, said, "We're very pleased by the acceptance of our program among so many governmental agencies, and especially gratified by the positive word-of-mouth that our current municipal clients are passing on to their colleagues in other jurisdictions. Our commitment to servicing the equipment needs of municipalities throughout the country with personalized attention and helping them to effectively meet those needs in difficult economic times is a great source of company pride. It also assures continued growth for Sparta in this business sector."

About Sparta Commercial Services, Inc.
Sparta Commercial Services, Inc. (OTCBB: SRCO) is a New York-based, nationwide financial services company offering financing and leasing products to consumers and retail powersports dealers. Sparta also specializes in the financing of essential equipment and services for the law enforcement and emergency response communities serving municipal and governmental agencies nationwide with our Municipal Leasing Product. Additionally, through Specialty Reports, Inc., a Sparta subsidiary, the company owns and operates Cyclechex, the first and only source exclusively for Motorcycle History Reports in the powersports industry. The Cyclechex Motorcycle History Reports appeal to consumers, retail dealers, lenders, auction houses, and insurance carriers.

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. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov.

Contact Information

  • Contact:

    Dick Trotter
    COO
    Sparta Commercial Services, Inc.
    (212) 239-2666