Company: CPSS
Filing Date: 2025-03-26
Form Type: 424B2
Source: 0001683168-25-001896
Chunk: 14

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-26
Form: 424B2
Chunk 14
---
ovenants.”

Because there are limited restrictions on our activities under the indenture, you will have only limited protections under the indenture.

In comparison to the restrictive
covenants that are imposed on us by our existing credit facilities and other borrowing arrangements, the indenture governing the notes
contains relatively minimal restrictions on our activities. In addition, the indenture contains only limited events of default other than
our failure to timely pay principal and interest on the notes. Because there are only very limited restrictions and limited events of
default under the indenture, we will not be restricted from issuing additional debt senior to your notes or be required to maintain any
ratios of assets to debt in order to increase the likelihood of timely payments to you under the notes. Further, if we default in the
payment of the notes or otherwise under the indenture, you will likely have to rely on the trustee to exercise your remedies on your behalf.
You may not be able to seek remedies against us directly. See “Description of the Notes – Events of Default.”

Because we may redeem the notes at any time prior to their maturity, you may be subject to reinvestment risk.

We have the right to redeem
any note at any time prior to its stated maturity upon 30 days written notice to you. The notes would be redeemed at 100% of the principal
amount plus accrued but unpaid interest up to but not including the redemption date. Any such redemption may have the effect of reducing
the income or return on investment that any investor may receive on an investment in the notes by reducing the term of the investment.
If this occurs, you may not be able to reinvest the proceeds at an interest rate comparable to the rate paid on the notes. See “Description of the Notes – Redemption or Repurchase Prior To Stated Maturity.”

Under certain circumstances, you may be required to pay taxes on accrued interest on the notes prior to receiving a sufficient amount of cash interest payments.

If you choose to have interest
on your note paid at maturity and the term of your note exceeds one year, you may be required to pay taxes on the accrued interest prior
to our making any interest payments to you. You should consult your tax advisor to determine your tax obligations.

Our directors, officers and other creditors have interests that may conflict with yours.

Our officers, directors and
certain of our creditors collectively have beneficial ownership of significant amounts of our common stock. Through that ownership and
as officers and directors, such persons are able to influence or determine the management and