SOURCE: Sparta Commercial Services, Inc.

September 22, 2009 08:30 ET

Sparta Responds to Broader Demand for Its Municipal Lease Program

NEW YORK, NY--(Marketwire - September 22, 2009) - Sparta Commercial Services, Inc. (OTCBB: SRCO) announced today that as a result of the expansion of its Municipal Lease Product to include several new asset classes, in addition to police motorcycles, the Company has received a number of requests from local governmental agencies asking Sparta to finance vehicles such as armored tactical trucks, electric/hybrid passenger busses and police cruisers, as well as other essential equipment used by those municipal agencies. All these transactions are structured without residual risk to Sparta.

The Company has started moving inquiries in these new areas of interest along the road to actual transactions. In addition to its previously announced relationship with Armet Armored Vehicles, the Company is currently in the contracting phase to lease police cruisers to multiple agencies at this time.

Commenting on this, Anthony Havens, Sparta's CEO, said, "Given the economic difficulties facing virtually all levels of local, county, and state governments, it isn't surprising to have many of the same agencies that we've been working with on police motorcycles approach us about leasing their police cruisers and other needed equipment. With our Municipal Leasing Product, municipalities are able to stretch their cash flow dollars further, allowing them to acquire the same amount of equipment for less upfront cash outlay, or to acquire additional equipment without the need for additional cash. It's the difference between having to further burden an already strained budget with a complete allocation up front and making much less demanding lease payments in installments over time.

"At the same time, we are also being contacted by a number of manufacturers that have historically had only one option -- to sell their products to these agencies for the full purchase price. They are now faced with the dilemma that their customers do not have access to the capital required to support those purchases. This is evidenced by our recent agreement with Armet Armored Vehicles to provide a leasing alternative to their governmental customers throughout the country."

Based in New York City, Sparta Commercial Services has been committed since its inception to the powersports industry, with its primary focus on consumer financing and leasing products nationwide. With the introduction of its Municipal Lease Product, the company saw an opportunity to bridge its experience in the motorcycle industry with the needs of local, county, and state agencies for police motorcycles, while also bolstering sales for the powersports dealers participating in the program.

Havens then concluded, saying, "We have been seeing many of those agencies for whom we provided lease financing earlier in our Program history begin to roll over their motorcycle fleets and lease the new units through Sparta. All indications tell us that they will continue to do so. Our Municipal Lease Program might well experience exponential growth in the near future with the outstanding financing alternative we're able to provide to governmental agencies as they look for ways to lower their cash expenditures."

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