Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 36

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 36
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 in our revenue. No assurance can be given that the underwriting criteria
and collection methods we employ will afford adequate protection against these risks. Any sustained period of increased delinquencies,
defaults, repossessions or losses or increased servicing costs could adversely affect our financial position, liquidity, results of operation
and our ability to enter into future financing transactions.

 20 

We sell repossessed automobiles
at wholesale auction markets located throughout the United States. Depressed wholesale prices for used automobiles may result in, or increase,
a loss upon our disposition of repossessed vehicles and we may be unable to collect the resulting deficiency balances. Depressed wholesale
prices for used automobiles may result from manufacturer incentives or discounts on new vehicles, financial difficulties of new vehicle
manufacturers, discontinuance of vehicle brands and models, increased used vehicle inventory resulting from significant liquidations of
rental or fleet inventories and increased trade-ins due to promotional programs offered by new vehicle manufacturers. Additionally, higher
gasoline prices may decrease the wholesale auction values of certain types of vehicles. Decreased auction proceeds resulting from the
depressed prices at which used automobiles may be sold during periods of economic slowdown or low retail demand could result in higher
losses for us. Further, we are dependent on the efficient operation of the wholesale auction markets. If the operations of the wholesale
auction markets are disrupted, we may be unable to sell our used vehicles at sufficient volume and/or pricing.

The number of delinquencies,
defaults, losses and repossessions on sub-prime automobile receivables has historically been significantly influenced by the employment
status of obligors on automobile loan contracts. Any general weakness in the economy may affect sub-prime obligors more strongly than
the population as a whole.

Furthermore, the global financial
markets have at times experienced increased volatility due to uncertainty surrounding the level and sustainability of the sovereign debt
of various countries. Concerns regarding sovereign debt may spread to other countries at any time. There can be no assurance that this
uncertainty relating to the sovereign debt of various countries will not lead to further disruption of the financial and credit markets
in the United States, which could adversely affect our financial position, liquidity, results of operation and our ability to enter into
future financing transactions.

A deterioration in economic
conditions and certain economic factors, such as reduced business activity, high unemployment, interest rates, housing prices, energy
prices (including the price of gasoline), increased consumer indebtedness (including of obligors on the receiv