Company: CPSS
Filing Date: 2025-03-26
Form Type: 424B2
Source: 0001683168-25-001896
Chunk: 16

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-26
Form: 424B2
Chunk 16
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 and                                                    |
| · | our ability to acquire and finance automobile contracts.                                            |

Depending upon the outcome
of one or more of these factors, we may not be able to generate sufficient cash flow from operations or obtain sufficient funding to satisfy
all of our obligations. Such factors may result in our being unable to pay our debts timely or as agreed. If we were unable to pay our
debts, we would be required to pursue one or 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
January 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