Company: CPSS
Filing Date: 2025-05-23
Form Type: 424B2
Source: 0001683168-25-003971
Chunk: 22

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-23
Form: 424B2
Chunk 22
---
 and warehoused automobile
contracts has higher delinquency and loss ratios than expected, then the amount of money realized from our retained residual interests,
or the amount of money we could obtain from the sale or other financing of our residual interests, would be reduced. Such a reduction,
if it should occur, could have material adverse effects on our future results of operations, financial condition and cash flows.

Our results of operations may be affected by changing economic conditions.

We are subject to changes in
general economic conditions that are beyond our control. During periods of economic slowdown or recession, delinquencies, defaults, repossessions
and losses generally increase. These periods also may be accompanied by increased unemployment rates, inflation, decreased demand for
automobiles and declining values of automobiles securing outstanding receivables, which weakens collateral values and increases the amount
of a loss in the event of default. Additionally, higher gasoline prices, the introductions of trade tariffs, declining stock market values,
unstable real estate values, increasing unemployment levels, general availability of consumer credit, changes in vehicle ownership trends
and other factors that impact consumer confidence or disposable income could increase loss frequency and decrease demand for automobiles
as well as weaken collateral values on certain types of automobiles. In addition, during an economic slowdown or recession, our servicing
costs may increase without a corresponding increase in our revenue. No assurance can be given that the underwriting criteria and collection
methods we employ will afford adequate protection against these risks. Any sustained period of increased delinquencies, defaults, repossessions
or losses or increased servicing costs could adversely affect our financial position, liquidity, results of operation and our ability
to enter into future financing transactions.

We sell repossessed automobiles
at wholesale auction markets located throughout the United States. Depressed wholesale prices for used automobiles may result in, or increase,
a loss upon our disposition of repossessed vehicles and we may be unable to collect the resulting deficiency balances. Depressed wholesale
prices for used automobiles may result from manufacturer incentives or discounts on new vehicles, financial difficulties of new vehicle
manufacturers, discontinuance of vehicle brands and models, increased used vehicle inventory resulting from significant liquidations of
rental or fleet inventories and increased trade-ins due to promotional programs offered by new vehicle manufacturers. Additionally, higher
gasoline prices may decrease the wholesale auction values of certain types of vehicles. Decreased auction proceeds resulting from the
depressed prices at which used automobiles may be sold during periods of economic slowdown or low retail