Company: CPSS
Filing Date: 2025-11-24
Form Type: 424B2
Source: 0001683168-25-008655
Chunk: 33

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-11-24
Form: 424B2
Chunk 33
---
and as of the end of the related quarter.

If actual market conditions indicate that the amount a market participant would pay for our receivables is materially lower than our recorded value, we may be required to reduce the recorded value for some or all of the receivables measured at fair value.

The fair value of an asset
is, by definition, the exchange price in an orderly transaction between market participants. Receivables such as ours are not regularly
traded on exchanges where we can observe prices for exchanges of similar assets. We may therefore rely on estimates of what a market participant
would pay for our receivables. If such estimated value were to be materially different from our recorded value, we might be required to
adjust the recorded value of our receivables. A downward readjustment in recorded value would correspondingly reduce our income and book
value.

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<div align='center'>Risks Related to General Factors</div>

If the economy of all or certain regions of the United States falls into recession, our results of operations may be impaired.

Our business is directly
related to sales of new and used automobiles, which are sensitive to employment rates, prevailing interest rates and other domestic economic
conditions. Delinquencies, repossessions and losses generally increase during economic slowdowns or recessions. Because of our focus on
sub-prime customers, the actual rates of delinquencies, repossessions and losses on our automobile contracts could be higher under adverse
economic conditions than those experienced in the automobile finance industry in general, particularly in the states of California, Texas,
Ohio, Illinois, and Florida, states in which our automobile contracts are geographically concentrated. Any sustained period of economic
slowdown or recession could adversely affect our ability to acquire suitable automobile contracts, or to securitize pools of such automobile
contracts. The timing of any economic changes is uncertain, and weakness in the economy could have an adverse effect on our business and
that of the dealers from which we purchase automobile contracts and result in reductions in our revenues or the cash flows available to
us.

Our results of operations may be impaired as a result of natural disasters.

Our automobile contracts are
geographically concentrated in the states of California, Florida, and Texas. Such states may be particularly susceptible to natural disasters:
earthquake in the case of California, and hurricanes and flooding in Florida and Texas. Natural disasters, in those states or others,
could cause a material number of our vehicle purchasers to lose their jobs, or could damage or