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

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-11-24
Form: 424B2
Chunk 25
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 a material extent, on the performance of automobile contracts that we purchase, warehouse and securitize. A portion of the
automobile contracts that we acquire will default or prepay. In the event of payment default, the collateral value of the vehicle securing
an automobile contract realized by us in a repossession will generally not cover the outstanding principal balance on that automobile
contract and the related costs of recovery.

For our receivables originated
prior to January 2018, we maintain an allowance for credit losses on automobile contracts held on our balance sheet, which reflects our
estimates of probable credit losses that can be reasonably estimated. If the allowance is inadequate, then we would recognize the losses
in excess of the allowance as an expense and our results of operations could be adversely affected.

Receivables originated since
January 2018 are recorded at fair value and incorporate estimates include the timing and severity of future credit losses. If actual credit
losses were to exceed our estimates, we might be required to change our estimates, which could result in a fair value adjustment to those
receivables or reduced interest income for those receivables in subsequent periods.

In addition, under the terms
of our warehouse credit facilities, we are not able to borrow against defaulted automobile contracts, including automobile contracts that
are, at the time of default, funded under our warehouse credit facilities, which will reduce the overcollateralization of those warehouse
credit facilities and possibly reduce the amount of cash flows available to us.

If we lose servicing rights on our portfolio of automobile contracts, our results of operations would be impaired.

We are entitled to receive
servicing fees only while we act as servicer under the applicable sale and servicing agreements governing our warehouse credit facilities
and securitizations. Under such agreements, we may be terminated as servicer upon the occurrence of certain events, including:

| · | our failure generally to observe and perform our responsibilities and other covenants;    |
| · | certain bankruptcy events; or                                                             |
| · | the occurrence of certain events of default under the documents governing the facilities. |

The loss of our servicing
rights could materially and adversely affect our results of operations, financial condition and cash flows. Our results of operations,
financial condition and cash flow, would be materially and adversely affected if we were to be terminated as servicer with respect to
a material portion of our managed portfolio.

If we lose key personnel, our results of operations may be impaired.

Our senior management team
averages over