Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 29

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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  changes in performance of our automobile contracts;

  •
  increases in interest rates;

  •
  our ability to generate sufficient operating and financing cash flows;

  •
  competition;

  •
  the level of losses incurred on contracts in our managed portfolio;

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  •
  adverse decisions by courts or regulators;

  •
  regulatory changes with respect to consumer finance;

  •
  changes in the market for used vehicles;

  •
  levels of cash releases from existing pools of contracts;

  •
  the terms on which we are able to finance contract purchases;

  •
  the willingness or ability of dealers to assign contracts to us on acceptable terms;

  •
  the terms on which we are able to complete term securitizations once contracts are acquired;

  •
  any breach in the security of our systems; and

  •
  such other factors as discussed through the “Risk Factors” section of this report.

Forward-looking statements
are neither historical facts nor guarantees of performance. Instead, they are based only on our current beliefs, expectations and assumptions
regarding the future of our business, plans and strategies, projections, anticipated events and trends, the economy and other uncertain
conditions. Because forward-looking statements relate to the future, they involve risks, uncertainties and assumptions. Actual results
may differ from expectations due to many factors beyond our ability to control or predict, including those described herein, and in any
documents incorporated by reference in this report. Therefore, you should not rely on any of these forward-looking statements. For these
statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995.

We undertake no obligation
to publicly update any forward-looking information. You are advised to consult any additional disclosure we make in our periodic reports
filed with the SEC.

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Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of Operations

Overview

We are a specialty finance
company. Our business is to purchase and service retail automobile contracts originated primarily by franchised automobile dealers and,
to a lesser extent, by select independent dealers in the United States in the sale of new and used automobiles, light trucks and passenger
vans. Through our automobile contract purchases, we provide indirect financing to the customers of dealers who have limited credit histories
or past credit problems, who we refer to as sub-prime customers. We serve as an alternative