Company: CPSS
Filing Date: 2025-03-26
Form Type: 424B2
Source: 0001683168-25-001896
Chunk: 34

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-26
Form: 424B2
Chunk 34
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contracts. In either case, such events could result in our receiving reduced collections on our automobile contracts, and could thus result
in reductions in our revenues or the cash flows available to us.

A pandemic or other public health emergency could have adverse effects.

The extent to which obligors
on our automobile contracts may be adversely affected by a pandemic or other public health emergency, by loss of employment, and by related
efforts of governments to slow the spread of a disease outbreak throughout the nation and world cannot be predicted. These occurrences
could have a material adverse effect on the ability of obligors to make timely payments to us.

Depending on
the extent to which a pandemic or other public health emergency adversely affects the United States economy, it may also have the effect
of heightening many of the other risks described in this “Risk Factors” section, such as those related to our business or
operations, the ability or willingness of our customers to make timely payments, and risks of geographic concentrations.

Social, economic and other factors may affect losses.

The ability of our customers
to make payments on automobile contracts will be affected by a variety of social and economic factors, most notably the extent to which
our customers remain gainfully employed. Other economic factors include interest rates, general unemployment levels, the rate of inflation,
adjustments in monthly mortgage payments and consumer perceptions of economic conditions generally and the effect of any government stimulus
programs and consumer protection/payment relief efforts. Social factors include changes in consumer confidence levels, consumer attitudes
toward bankruptcy and the repayment of indebtedness and consumer perceptions of political events and shifts. We are generally unable to
determine whether or to what extent economic or social factors will affect the performance of our portfolio of automobile contracts, but
caution that a recession or depression in local, regional or national economies would be expected to increase delinquencies and losses,
which would adversely affect our financial condition and results of operations.

If an increase in interest rates results in a decrease in our cash flow from excess spread, our results of operations may be impaired.

Our profitability is largely
determined by the difference, or “spread,” between the effective interest rate we receive on the automobile contracts that
we acquire and the interest rates payable under warehouse credit facilities and on the asset-backed securities issued in our securitizations.
In the past, disruptions in the market for asset-backed securities resulted in an increase in the interest rates we paid on asset-backed
securities. Should similar disruptions take place in the future, we may pay higher