Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 190

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 190
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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.

 27 

Risks Related to General Factors

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.

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.

Our Results of Operations May Be Impaired as a Result of Natural
Disasters.

Our