SOURCE: Sparta Commercial Services, Inc.

August 27, 2009 08:30 ET

Sparta to Offer Lease Purchase Financing for Armet Armored Vehicles

NEW YORK, NY--(Marketwire - August 27, 2009) - Sparta Commercial Services, Inc. (OTCBB: SRCO) today announced that it has entered into a strategic agreement with Armet Armored Vehicles, Inc. Sparta will offer its Lease Purchase Financing Product to municipalities throughout the U.S. that purchase units from Armet's line of tactical armored vehicles.

Lease Purchase Financing offered by Sparta allows municipalities to purchase vital equipment and property through installment lease payments, with no large, up-front cash outlays required. As payments are made, the municipality -- which maintains ownership of the equipment -- builds equity in its investment. Furthermore, because Lease Purchase Financing is not considered "Debt" for municipalities, only the current year's lease payment(s) is required to be included in the operating budget. With Lease Purchase Financing, the municipality takes title ownership in the equipment at the beginning of the lease and owns the equipment at the end of the lease term.

Armet is a worldwide leader as a manufacturer of custom designed armored vehicles. With production facilities in the United States, Australia, India, Canada, and Malta, and service and sales locations in numerous countries throughout the world, Armet's leadership position in the armored vehicle industry is unequalled.

Commenting on the new relationship with Armet, Anthony Havens, Sparta's CEO, said, "Although our primary focus continues to be on consumer financing and leasing in the powersports industry, we expect that this agreement with Armet will significantly increase our volume of business in our Municipal Leasing Program. It demonstrates once again how Sparta's Municipal Lease Purchase Financing Product is becoming a very desirable alternative for governmental agencies that require these and other types of equipment, yet have a need to reduce their annual expenditures at a time when tax revenues are shrinking. Although our Municipal Program has thus far focused on the nationwide need for the financing of police motorcycles, it is designed for virtually any type of vehicle, as well as other equipment, and Armet's armored units are a perfect fit for Sparta's Municipal Program. We are pleased that Armet chose our firm to support their financing needs."

Armet's armored vehicles typically range from $200,000 to $250,000, and are being utilized by police departments, heads of state, government agencies, and VIPs around the world.

In closing, Havens said, "Sparta is committed to finding new, appealing, and profitable business opportunities wherever and whenever possible. This new relationship with Armet is yet another demonstration of that commitment. It's also another indication that Sparta, even in difficult economic times, can continue to meet the objectives of its business model and increase value for our shareholders."

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.

Contact Information

  • Contact:

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