Sparta Commercial Services Inc., a New York-based powersports lender, has inked a deal with a regional bank to offer nonprime consumer indirect auto finance. Sparta will originate the loans, then sell them to the bank, which it declined to name, for servicing.
Sparta’s auto finance program will be offered to new and used auto dealerships, but likely will be most commonly used by those with affiliated motorcycle dealerships.
Auto leasing appears to be on Sparta’s radar, as well. Here’s a note in the company’s most recent quarterly report, filed in December with the SEC:
“In September 2010 we entered into an initial $5 million motorcycle lease purchase facility with a subsidiary of a major fund. We are presently in negotiations with this fund to initiate an automobile lease purchase facility.”
Sparta currently offers lending and leasing products to consumers and retail powersports and automotive dealers. Its Second Chance Express Program offers used, low mileage vehicles to motorcycle customers with spotty credit.
The company also serves municipal and governmental agencies with its Municipal Lease Program, which offers financing for the law enforcement and emergency response communities. More recently, Sparta launched Cyclechex, an online source exclusively for motorcycle history reports.
