Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 10

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 10
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and other sources. In addition, we contact each customer by telephone to confirm that the customer understands and agrees to the terms
of the related automobile contract. During this "welcome call,"
we also ask the customer a series of open-ended questions about his application and the contract, which may uncover potential misrepresentations.

Credit Scoring.  We
use proprietary scoring models to assign two internal "credit scores" at the time the application is received. These proprietary
scores are used to help determine whether we want to approve the application and, if so, the program and pricing we will offer either
to the dealer, or in the case of our direct lending platform, directly to the customer. Our internal credit scores are based on a variety
of parameters including traditional and alternative credit history, data derived from other sources such as house/rental payment, length
of employment, residence stability and total income. When the dealer proposes a structure for the contract, our scores consider various
deal structure parameters such as down payment amount, loan to value, payment to income, make and model, vehicle class, and mileage. We
have developed our credit scores utilizing statistical risk management techniques and historical performance data from our managed portfolio.
We believe this improves our allocation of credit evaluation resources, enhances our competitiveness in the marketplace and manages the
risk inherent in the sub-prime market.

 6 

Characteristics of Contracts.  All
the automobile contracts we purchase are fully amortizing and provide for level payments over the term of the automobile contract. All
automobile contracts may be prepaid at any time without penalty. The table below compares certain characteristics, at the time of origination,
of our contract purchases for the years ended December 31, 2024 and 2023:

    Contracts Purchased During the Year Ended 

    December 31, 2024  
    December 31, 2023 

    Average Original Amount Financed 
    $21,931  
    $20,845 
  
    Weighted Average Original Term 
     71 months  
     67 months 
  
    Average Down Payment Percent 
     10.7%  
     10.7% 
  
    Average Vehicle Purchase Price 
    $20,499  
    $19,651 
  
    Average Age of Vehicle 
     7 years  
     7 years 
  
    Average Age of Customer 
     42 years  
     42 years 
  
    Average Time in