Company: CPSS
Filing Date: 2025-08-22
Form Type: 424B2
Source: 0001683168-25-006421
Chunk: 16

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-22
Form: 424B2
Chunk 16
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 lenders. If executed, these strategies could reduce the cash available to pay your Notes.

| 14 |

We need substantial liquidity to operate our business.

We have historically funded our
operations principally through internally generated cash flows, sales of debt and equity securities, including through securitizations
and warehouse credit facilities, borrowings under senior secured debt agreements and sales of subordinated notes. However, we may not
be able to obtain sufficient funding for our future operations from such sources. During 2008, 2009 and much of 2010, our access to the
capital markets was impaired with respect to both short-term and long-term funding. In April 2020 we postponed our planned securitization
due to the onset of the pandemic and the effective closure of the capital markets in which our securitizations are executed. Subsequently
we successfully completed securitizations in June and September 2020, and then on a regular quarterly schedule from January 2021 through
July 2025. While our access to such funding has improved since then, our results of operations, financial condition and cash flows have
been from time to time in the past and may in the future be materially and adversely affected. We require a substantial amount of cash
liquidity to operate our business. Among other things, we use such cash liquidity to:

| · | acquire automobile contracts;                                                  |
| · | fund overcollateralization in warehouse credit facilities and securitizations; |
| · | pay securitization fees and expenses;                                          |
| · | fund spread accounts in connection with securitizations;                       |
| · | satisfy working capital requirements and pay operating expenses;               |
| · | pay taxes; and                                                                 |
| · | pay interest expense.                                                          |

Historically we have matched
our liquidity needs to our available sources of funding by reducing our acquisition of new automobile contracts, at times to merely nominal
levels. There can be no assurance that we will continue to be successful with that strategy.

We have experienced periods of significant losses.

From time to time throughout
our history we have incurred net losses, most recently over the period beginning with the quarter ended September 30, 2008 and ending
with the quarter ended September 30, 2011. We were adversely affected by the economic recession affecting the United States as a whole,
for a time by increased financing costs and decreased availability of capital to fund our purchases of automobile contracts, and by a
decrease in the