Company: CPSS
Filing Date: 2025-03-26
Form Type: 424B2
Source: 0001683168-25-001896
Chunk: 19

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-26
Form: 424B2
Chunk 19
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 operate;                                                                                 |
| · | placing us at a competitive disadvantage compared to our competitors that have less debt; and                                                                                                           |
| · | limiting our ability to borrow additional funds.                                                                                                                                                        |

Although we believe we are
able to service and repay such debt, there is no assurance that we will be able to do so. If we do not generate sufficient operating profits,
our ability to make required payments on our debt would be impaired. Failure to pay our indebtedness when due would give rise to various
remedies in favor of any unpaid creditors, and creditors’ exercise of such remedies could have a material adverse effect on our
earnings.

| 16 |

Our results of operations will depend on our ability to securitize our portfolio of automobile contracts.

We depend upon our ability
to obtain permanent financing for pools of automobile contracts by conducting term securitization transactions. By “permanent financing”
we mean financing that extends to cover the full term during which the underlying automobile contracts are outstanding and requires repayment
as the underlying automobile contracts are repaid or charged off. By contrast, our warehouse credit facilities permit us to borrow against
the value of such receivables only for limited periods of time. Our past practice and future plan has been and is to repay loans made
to us under our warehouse credit facilities with the proceeds of securitizations. There can be no assurance that any securitization transaction
will be available on terms acceptable to us, or at all. The timing of any securitization transaction is affected by a number of factors
beyond our control, any of which could cause substantial delays, including, without limitation:

| · | market conditions;                                                                     |
| · | the approval by all parties of the terms of the securitization;                        |
| · | our ability to acquire a sufficient number of automobile contracts for securitization. |

During 2008 and 2009 we observed
adverse changes in the market for securitized pools of automobile contracts, which made permanent financing in the form of securitization
transactions difficult to obtain and more costly than in prior periods. These changes included reduced liquidity and reduced demand for
asset-backed securities, particularly for securities carrying a financial guaranty or for securities backed by sub-prime automobile receivables.
We experienced improvements in the capital markets from 2010 through 2019, during which time we completed 36 securitizations. In April
2020 we postponed our planned securit