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Here are 1-3 brief analogies for Consumer Portfolio Services (CPSS):

• Rent-A-Center for used car loans.

• Capital One for subprime auto loans.

• Ally Financial for drivers with limited credit history.

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Consumer Portfolio Services (CPSS) primarily sells to individuals, specifically consumers seeking financing for used vehicle purchases.

The company specializes in indirect auto financing for individuals with subprime credit. Here are up to three categories of customers it serves:

• Subprime Credit Borrowers: Individuals with FICO scores typically ranging from the low 500s to low 600s, who may have experienced past credit challenges such as bankruptcies, repossessions, or a history of late payments, making it difficult for them to obtain financing from traditional lenders.
• Used Vehicle Purchasers: Customers specifically seeking to finance the acquisition of pre-owned automobiles, as CPSS primarily focuses on originating loans for used vehicles through its network of partner dealerships.
• Individuals with Limited or Non-Traditional Credit History: This category includes customers who may not have an extensive credit history, have non-traditional income sources, or other factors that prevent them from qualifying for prime or near-prime auto loans, necessitating a lender like CPSS that specializes in higher-risk profiles.

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Barclays PLC (BCS)

Wells Fargo & Company (WFC)

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Charles E. Bradley, Jr. Chief Executive Officer and Chairman of the Board

Charles E. Bradley, Jr. has served as the Chief Executive Officer of Consumer Portfolio Services (CPS) since January 1992 and as a director since its formation in March 1991, becoming Chairman of the Board in July 2001. He was also President from March 1991 to December 2022. Prior to his time at CPS, Mr. Bradley, Jr. was the Chief Operating Officer of Barnard and Company, a private investment firm, from April 1989 to November 1990. He was also an associate of The Harding Group, a private investment banking firm, from September 1987 to March 1989. He co-founded Consumer Portfolio Services, Inc. in 1991 with his father, Charles E. Bradley, Sr.

Danny Bharwani Executive Vice President, Chief Financial Officer

Danny Bharwani has been the Chief Financial Officer since September 2022 and Executive Vice President – Finance since December 2022. He previously served as Senior Vice President – Accounting from April 2016 and Vice President – Accounting from June 2002, having joined the company as Assistant Controller in August 1997. Before joining CPS, Mr. Bharwani was employed as Assistant Controller at The Todd-AO Corporation from 1989 to 1997.

Michael T. Lavin President, Chief Operating Officer and Chief Legal Officer

Michael T. Lavin has served as President since December 2022. He previously held the titles of Executive Vice President, Chief Legal Officer, and Chief Operating Officer since March 2019. Prior to that, he was Executive Vice President and Chief Legal Officer since March 2014, Senior Vice President - General Counsel since March 2013, and Senior Vice President and Corporate Counsel since May 2009. Mr. Lavin joined CPS in November 2001 as Vice President - Legal. He was previously an associate at a large law firm and a spin-off startup law firm.

Teri L. Robinson Executive Vice President, Sales and Originations

Teri L. Robinson holds the position of Executive Vice President of Sales and Originations.

Christopher Terry Executive Vice President, Risk Management, Systems and Information Technology

Christopher Terry has been Executive Vice President of Risk Management, Systems, and IT since December 2022. His previous roles at CPS include Senior Vice President of Risk Management, Systems, and IT from October 2018 to December 2022, Senior Vice President of Risk Management from May 2017 to October 2018, Senior Vice President of Servicing from May 2005 to August 2013, and Senior Vice President of Asset Recovery from August 2013 to May 2017 and from January 2003 to May 2005.

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The public company Consumer Portfolio Services (CPSS), a specialized subprime auto lender, faces several key risks inherent to its business model and the market it operates within. The most significant risks include:

1. Credit Risk and Rising Delinquencies: As a subprime auto lender, CPSS's core business involves providing financing to individuals with limited credit histories or past credit problems. This customer segment is highly vulnerable to economic fluctuations, such as rising unemployment or economic slowdowns, which can lead to higher loan default rates and increased delinquencies. Recent reports indicate a rise in subprime auto loan delinquencies, directly impacting CPSS's asset quality and profitability, with the company experiencing elevated delinquency rates in its portfolio.
2. Economic Cyclicality: Consumer Portfolio Services' financial performance is highly cyclical and is directly influenced by broader economic conditions and consumer confidence. The subprime auto lending sector is characterized as one of the most volatile and high-risk sectors of the economy. During economic downturns, borrowers are more likely to default on their loans, increasing the company's provision for loan losses and negatively affecting its overall financial health.
3. Interest Rate Risk: Fluctuations in interest rates pose a significant challenge for CPSS. Rising interest rates can impact the affordability of loans for subprime borrowers, potentially leading to increased delinquencies. Furthermore, higher interest rates can increase the company's own cost of funds, particularly given its reliance on securitization markets for long-term financing, thereby threatening its profit margins and bottom line. CPSS has already responded to macroeconomic headwinds by raising its interest rates, which increases the monthly payments for its customers.

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• Rising Cost of Capital and Increased Default Risk due to Higher Interest Rates: The sustained increases in benchmark interest rates by the Federal Reserve directly elevate Consumer Portfolio Services' funding costs, compressing their profit margins. Simultaneously, higher rates make auto loans less affordable for their subprime borrower base, leading to an increased likelihood of loan delinquencies and defaults.
• Potential Decline in Used Vehicle Values: After a period of elevated used car prices, the market is showing signs of normalization and potential decline. A significant drop in used vehicle values directly impacts the collateral backing CPSS's loans. In the event of a loan default and vehicle repossession, lower resale values for repossessed vehicles translate into higher loss severities for the company.
• Persistent Inflation and Erosion of Subprime Consumer Purchasing Power: Ongoing high inflation, particularly for essential goods and services, disproportionately affects subprime consumers who typically have tighter budgets. This erosion of purchasing power makes it increasingly difficult for borrowers to meet their car payment obligations, contributing to higher delinquency rates and credit losses for CPSS, even independent of interest rate increases.

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Consumer Portfolio Services (CPSS) primarily operates in the indirect automobile financing sector, focusing on individuals with subprime credit histories for the purchase of used, and to a lesser extent, new vehicles. Their main products and services are therefore situated within the subprime auto lending and used car financing markets.

The addressable markets for Consumer Portfolio Services are as follows:

• Subprime Auto Loans (U.S.): The market size for Subprime Auto Loans in the United States is projected to be $19.3 billion in 2025.
• Used Car Financing (U.S.): The overall U.S. auto loan market is estimated at USD 676.20 billion in 2025. Used vehicle financing constituted 58.96% of the U.S. auto loan market share in 2024, which equates to approximately USD 398.6 billion. Furthermore, the North American Used Car Financing Market was valued at USD 259.71 billion and is anticipated to reach USD 413.23 billion over the next five years, with the United States expected to account for the highest growth within this regional market.

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Consumer Portfolio Services (CPSS) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Expansion of Loan Originations and Dealer Network: The company has demonstrated consistent growth in new contract originations and an expanding portfolio of finance receivables. In the first quarter of 2025, CPSS originated $451 million in new contracts, marking a 31.5% year-over-year increase, and its portfolio of assets under management grew to $3.45 billion, up from $3 billion year-over-year. This growth is further supported by the hiring of new sales representatives and the expansion into new territories, alongside growing relationships with dealerships, including Hyundai. Management targets another 25% increase year-over-year in originations for 2025.
2. Optimized Loan Portfolio Yields and Credit Quality: CPSS focuses on enhancing the net yield from its fair value portfolio by maintaining attractive Annual Percentage Rates (APRs) on new loans while rigorously managing credit risk. The company successfully increased its APR from 17% in 2022 to 20.3% by Q1 2025, even as demand for subprime auto loans increased. Furthermore, CPSS employs tightened credit models and leverages AI innovations to improve credit performance, evidenced by a focus on "good paper" and a nominal decrease in delinquencies and charge-offs. The fair value portfolio yielded 11.4% net of losses in Q1 2025.
3. Strategic Use of Securitizations to Fund Portfolio Growth: As a subprime auto lender, CPSS relies heavily on securitization markets to fund its loan originations and expand its finance receivables. Management actively expands originations and securitizations to grow its fair-value loan portfolio. The company completed four securitizations in 2024, totaling $1.5 billion in notes sold, which are crucial for financing the growing portfolio of automobile contracts. Continued access to and efficient execution in these capital markets are essential for sustaining the growth of its loan portfolio and, consequently, its interest income.

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Share Repurchases

• The Board of Directors authorized share repurchases of $5.0 million in November 2021 and an additional $8.675 million in December 2021.
• Consumer Portfolio Services has made consistent share repurchases over the last several years, with quarterly amounts varying.
• Total share repurchases from Q4 2020 to Q3 2024 amounted to approximately $59.8 million.

Share Issuance

• The number of outstanding shares for Consumer Portfolio Services has continued to increase due to the exercise of stock options as part of the company's employee long-term incentive plan.

Inbound Investments

• In October 2020, Auto Experience, Inc. proposed to acquire Consumer Portfolio Services for $135 million in cash, however, this was a proposal and not a completed inbound investment.

Outbound Investments

• No significant strategic outbound investments in other companies by Consumer Portfolio Services have been reported over the last 3-5 years.

Capital Expenditures

• Specific dollar values or a detailed primary focus of capital expenditures for Consumer Portfolio Services are not explicitly available in the provided information for the last 3-5 years.