Company: CPSS
Filing Date: 2025-11-24
Form Type: 424B2
Source: 0001683168-25-008655
Chunk: 16

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-11-24
Form: 424B2
Chunk 16
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 more alternative strategies, such as selling assets, refinancing or restructuring our indebtedness
or selling additional equity capital. These alternative strategies might not be feasible at the time, might prove inadequate, or could
require the prior consent of our 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 October 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