Company: CPSS
Filing Date: 2025-08-22
Form Type: 424B2
Source: 0001683168-25-006421
Chunk: 32

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-08-22
Form: 424B2
Chunk 32
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eto) no amount payable under any transaction
document with respect to the related securitization is then due and owing, but unpaid. These restrictions may limit our ability to receive
distributions in respect of the residual interests from our securitization facilities, which may limit our ability to generate earnings.

<div align='center'>Risks Related to Fair Value Accounting</div>

Receivables we’ve acquired
since January 1, 2018 are accounted for based on the fair value method of accounting. The risks described below are risks related to fair
value accounting.

If actual results for our receivables materially deviate from our estimates, we may be required to reduce the interest income we recognize for some or all of the receivables measured at fair value.

We recognize interest income
on receivables accounted under fair value based on a level yield internal rate of return that we calculate based the terms of the receivables
and our estimates at the time of acquisition of the future performance of those receivables. Such estimates include the timing and severity
of future credit losses and the rates of amortization and of prepayments. If actual credit losses were to exceed our estimates, or if
the actual amortization and prepayments of the receivables were to be materially different from our estimates, we might be required to
change our estimates, which could result in a reduced interest income for those receivables in subsequent periods.

If actual results for our receivables materially deviate from our estimates, we may be required to reduce the recorded value for some or all of the receivables measured at fair value.

We re-evaluate the recorded
value of receivables measured at fair value at the close of each quarter. If the re-evaluation were to yield a value materially different
from the previous recorded value, an adjustment would be required. If actual credit losses were to exceed our estimates, or if the actual
amortization and prepayments of the receivables were to be materially different from our estimates, we might be required to adjust the
recorded value of such receivables. A downward readjustment in recorded value would correspondingly reduce our income and book value for
and as of the end of the related quarter.

If actual market conditions indicate that the amount a market participant would pay for our receivables is materially lower than our recorded value, we may be required to reduce the recorded value for some or all of the receivables measured at fair value.

The fair