Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 1

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 1
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, Nevada. Most of our operational and administrative functions take place in Irvine, California. Credit and underwriting
functions are performed primarily in our California branch with certain of these functions also performed in our Florida and Nevada branches.
We service our automobile contracts from our California, Nevada, Virginia, Florida, and Illinois branches.

Most of our contract acquisitions
volume results from our purchases of retail installment sales contracts from franchised or independent automobile dealers. We establish
relationships with dealers through our employee sales representatives, who contact prospective dealers to explain our automobile contract
purchase programs, and thereafter provide dealer training and support services. Our sales representatives represent us exclusively. They
may work from our Irvine branch, our Las Vegas branch, or in the field, in which case they work remotely and support dealers in their
geographic area. Our sales representatives present dealers with a sales package, which includes our promotional material containing the
terms offered by us for the purchase of automobile contracts, a copy of our standard-form dealer agreement, and required documentation
relating to automobile contracts. As of December 31, 2024, we had 122 sales representatives, and in that month, we received applications
from 8,600 dealers in 47 states. As of December 31, 2024, approximately 72% of our active dealers were franchised new car dealers that
sell both new and used vehicles, and the remainder were independent used car dealers.

 1 

We have in the past solicited
credit applications directly from prospective automobile consumers through the internet under a program we refer to as our direct lending
platform. For qualified applicants we offered terms similar to those that we offer through dealers, though without a down payment requirement
and with more restrictive loan-to-value and credit score requirements. Applicants approved in this fashion are free to shop for and purchase
a vehicle from a dealer of their choosing, after which we entered into a note and security agreement directly with the consumer. We terminated
our direct lending platform in September 2023 and we do not intend to originate any such loans going forward. However, we intend to continue
servicing our existing direct loans. As of December 31, 2024, automobile contracts under the direct lending platform represented 1.6%
of our outstanding managed portfolio.

For the year ended December
31, 2024 approximately 91% of the automobile contracts originated under our programs consisted of financing for used cars and 9% consisted
of financing for new cars.

We generally solicit applications
with the