Company: CPSS
Filing Date: 2025-05-23
Form Type: 424B2
Source: 0001683168-25-003971
Chunk: 25

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-23
Form: 424B2
Chunk 25
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 may not be able
to purchase automobile contracts from dealers at a price acceptable to us, which could result in reductions in our revenues or the cash
flows available to us.

If our dealers do not submit a sufficient number of suitable automobile contracts to us for purchase, our results of operations may be impaired.

We are dependent upon establishing
and maintaining relationships with a large number of unaffiliated automobile dealers to supply us with automobile contracts. During the
year ended December 31, 2024, no single dealer accounted for as much as 2% of the automobile contracts we purchased. The agreements we
have with dealers to purchase automobile contracts do not require dealers to submit a minimum number of automobile contracts for purchase.
The failure of dealers to submit automobile contracts that meet our underwriting criteria could result in reductions in our revenues or
the cash flows available to us, and, therefore, could have an adverse effect on our results of operations.

If a significant number of our automobile contracts experience defaults, our results of operations may be impaired.

We specialize in the purchase
and servicing of automobile contracts to finance automobile purchases by sub-prime customers, those who have limited credit history, low
income, or past credit problems. Such automobile contracts entail a higher risk of non-performance, higher delinquencies and higher losses
than automobile contracts with more creditworthy customers. While we believe that our pricing of the automobile contracts and the underwriting
criteria and collection methods we employ enable us to control, to a degree, the higher risks inherent in automobile contracts with sub-prime
customers, no assurance can be given that such pricing, criteria and methods will afford adequate protection against such risks.

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If automobile contracts that
we purchase and hold experience defaults to a greater extent than we have anticipated, this could materially and adversely affect our
results of operations, financial condition, cash flows and liquidity. Our results of operations, financial condition, cash flows and liquidity,
depend, to 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