Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 48

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 48
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 Effects

The extent to which obligors on our automobile
contracts may be adversely affected by a pandemic or other public health emergency, by loss of employment, and by related efforts of governments
to slow the spread of a disease outbreak throughout the nation and world cannot be predicted. These occurrences could have a material
adverse effect on the ability of obligors to make timely payments to us.

Depending on the extent to which a pandemic or
other public health emergency adversely affects the United States economy, it may also have the effect of heightening many of the other
risks described in this “Risk Factors” section, such as those related to our business or operations, the ability or willingness
of our customers to make timely payments, and risks of geographic concentrations.

Our Results of Operations May Be Impaired as a Result of Natural
Disasters.

Our automobile contracts are
geographically concentrated in the states of California, Florida, and Texas. Such states may be particularly susceptible to natural disasters:
earthquake in the case of California, and hurricanes and flooding in Florida and Texas. Natural disasters, in those states or others,
could cause a material number of our vehicle purchasers to lose their jobs, or could damage or destroy vehicles that secure our automobile
contracts. In either case, such events could result in our receiving reduced collections on our automobile contracts, and could thus result
in reductions in our revenues or the cash flows available to us.

Effect of Social, Economic and Other Factors on Losses.

The ability of our customers to make payments
on automobile contracts will be affected by a variety of social and economic factors, most notably the extent to which our customers remain
gainfully employed. Other economic factors include interest rates, general unemployment levels, the rate of inflation, adjustments in
monthly mortgage payments and consumer perceptions of economic conditions generally and the effect of any government stimulus programs
and consumer protection/payment relief efforts. Social factors include changes in consumer confidence levels, consumer attitudes toward
bankruptcy and the repayment of indebtedness and consumer perceptions of political events and shifts, which may be affected by the pandemic.
We are generally unable to determine whether or to what extent economic or social factors will affect the performance of our portfolio
of automobile contracts, but caution that a recession or depression in local, regional or national economies would be expected to increase
delinquencies and losses, which would adversely affect our financial condition and results of operations.

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If an Increase in Interest Rates Results in a Decrease in Our
Cash Flows from Excess Spread,