Company: CPSS
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001683168-25-005901
Chunk: 48

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 the six months ended June 30, 2024.

Sales expenses consist primarily
of commission-based compensation paid to our employee sales representatives. Our sales representatives earn a salary plus commissions
based on volume of contract purchases and sales of ancillary products and services that we offer our dealers. Sales expense increased
to $11.6 million during the six months ended June 30, 2025 from $10.8 million in the same period in 2024. We purchased $884.2 million
of new contracts during the six months ended June 30, 2025 compared to $778.2 million in the prior year period.

Occupancy expenses was $2.8
million for the six months ending June 30, 2025, which is down from $3.0 million for the same period in 2024.

Depreciation and amortization
expenses increased to $498,000 compared to $436,000 in the previous year.

For the
six months ended June 30, 2025, we recorded income tax expense of $4.3 million, representing a 31% effective tax rate. In the prior period,
our income tax expense was $4.0 million, representing a 30% effective tax rate.

Credit Experience

Our financial results are dependent
on the performance of the automobile contracts in which we retain an ownership interest. Broad economic factors such as recession and
significant changes in unemployment levels influence the credit performance of our portfolio, as does the weighted average age of the
receivables at any given time. The tables below document the delinquency, repossession and net credit loss experience of all such automobile
contracts that we originated or own an interest in as of the respective dates shown.

 42 

Delinquency, Repossession and Extension Experience
(1)

Total Managed Portfolio (Excludes Third Party
Portfolio)

    June 30, 2025  
    June 30, 2024  
    December 31, 2024 

    Number of  
       
    Number of  
       
    Number of  

    Contracts  
    Amount  
    Contracts  
    Amount  
    Contracts  
    Amount 

    (Dollars in thousands) 
  
    Delinquency Experience 

    Gross servicing portfolio (1) 
     211,246  
    $3,708,381  
     187,968  
    $3,173