SOURCE: Sparta Commercial Services, Inc.

March 03, 2010 09:00 ET

Sparta Intensifies Marketing of Its Municipal Lease Product

NEW YORK, NY--(Marketwire - March 3, 2010) -  Sparta Commercial Services (OTCBB: SRCO) announced today that, as a result of the growing interest among local and state governmental agencies, the Company is intensifying its marketing efforts in support of its Municipal Lease Product. With the recent addition of more cities and towns to Sparta's roster of municipalities under contract for the leasing of vehicles and other equipment, and the rapidly growing number of inquiries from other agencies around the country, the Company believes that refocusing additional resources to its marketing activity is essential.

Sparta has also established relationships with one of the four manufacturers of police motorcycles, which has recently given Sparta a presence at its corporate website as a recommended source for Municipal Lease Purchase Financing. Sparta considers this a major advancement for its Municipal Lease Financing Program, and is actively engaged with two additional OEMs in an effort to form similar strategic alliances.

In addition to the new business being generated in its Municipal Lease Purchase Financing Program, Sparta is also anticipating a number of lease purchase contract renewals coming up for Newark, NJ; Darke County, OH; Montville, NJ; Pascagoula, MS; and Miami County, OH.

According to the Company, their Municipal Lease Program is an ideal alternative to the traditional outright purchase of the police cars, police motorcycles and other essential equipment that these agencies require, especially during these difficult economic times. More than 17,000 state and local law enforcement agencies operating in the United States will purchase 65,000 police cars each year, creating over 1.6 billion dollars in annual sales. These agencies will also purchase over 60,000 police motorcycles during the next five years, creating an additional 1 billion dollars in sales over that time period. Sparta's current goal is to capture a minimum of one percent of the estimated market for these vehicles, representing about 18 million dollars worth of annual municipal lease fundings. These figures do not take into account other essential equipment that Sparta includes in its Municipal Lease Purchase Financing Program, such as the on-board digital video and data equipment used on these vehicles. Sparta is currently working with major national suppliers of these assets to provide financing for these ancillary products as well.

Sparta Commercial Services expanded offerings permit it to capitalize on a growing market trend. Local and State agencies, with difficult economic challenges, do not have the necessary money in their budgets to keep up to date with all their equipment needs. Sparta's Municipal Lease Product is the most attractive option for these agencies since it makes it possible for them to spread the cost of the equipment over time and still allows them to own the equipment outright at the end of the term of the lease.

About Sparta Commercial Services: Sparta Commercial Services is a New York-based, nationwide financial services company dedicated to the powersports industry, offering financing and leasing products to consumers and retail powersports dealers, as well as a variety of commercial products for governmental agencies that require motorcycles and other equipment for law enforcement activities.

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