Consumer Portfolio Services, Inc. (CPSS): Business Model Canvas

In der komplexen Welt der Automobilfinanzierung erweist sich Consumer Portfolio Services, Inc. (CPSS) als strategisches Kraftpaket, das die traditionelle Kreditvergabelandschaft verändert, indem es innovative Lösungen für Kreditnehmer anbietet, die von herkömmlichen Finanzinstituten oft übersehen werden. Durch die Nutzung eines ausgefeilten Geschäftsmodells, das die Lücke zwischen Verbrauchern mit Subprime-Kredit und Autohändlern schließt, hat sich CPSS eine einzigartige Nische im Finanzdienstleistungs-Ökosystem geschaffen und bietet flexible Finanzierungsoptionen, die es Personen mit schwieriger Bonitätshistorie ermöglichen, mithilfe modernster Technologie und personalisierter Kreditansätze Zugang zum Besitz eines Fahrzeugs zu erhalten.

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Wichtige Partnerschaften

Autohändlernetzwerke in mehreren Bundesstaaten

Consumer Portfolio Services, Inc. unterhält ab 2023 Partnerschaften mit rund 7.500 unabhängigen Autohäusern in 48 Bundesstaaten. Das Händlernetz des Unternehmens generierte im Geschäftsjahr 2023 Kredite in Höhe von insgesamt 1,2 Milliarden US-Dollar.

Staatliche Berichterstattung	Anzahl der Händler	Kreditvergabevolumen
Gesamtes Händlernetz	7,500	1,2 Milliarden US-Dollar
Abgedeckte Staaten	48	N/A

Anbieter von Finanztechnologie-Software (FinTech).

CPSS arbeitet mit mehreren FinTech-Anbietern zusammen, um die Möglichkeiten der digitalen Kreditvergabe zu verbessern. Zu den wichtigsten Technologiepartnerschaften gehören:

• Softwareplattformen für die Kreditvergabe
• Algorithmen zur Risikobewertung
• Systeme zur digitalen Dokumentenprüfung

Regionale und nationale Banken für Kreditfinanzierung

Das Unternehmen unterhält Kreditfazilitäten bei 12 Finanzinstituten, mit insgesamt verfügbaren Kreditlinien von 425 Millionen US-Dollar zum 31. Dezember 2023.

Banktyp	Anzahl der Kreditfazilitäten	Gesamtkreditlinie
Regionalbanken	8	275 Millionen Dollar
Nationalbanken	4	150 Millionen Dollar

Kreditauskunfteien zur Risikobewertung

CPSS nutzt Daten von drei großen Kreditauskunfteien, um umfassende Risikobewertungen durchzuführen:

• Experian
• TransUnion
• Equifax

Fahrzeugvermarktungs- und Auktionsunternehmen

Consumer Portfolio Services arbeitet mit 15 Fahrzeug-Remarketing-Unternehmen zusammen und verwaltet im Jahr 2023 durchschnittlich 3.200 Fahrzeugverkäufe pro Quartal. Der Gesamt-Remarketing-Umsatz belief sich im Geschäftsjahr auf 42,6 Millionen US-Dollar.

Metrisch	Wert
Anzahl der Remarketing-Partner	15
Vierteljährliche Fahrzeugdispositionen	3,200
Jährlicher Remarketing-Umsatz	42,6 Millionen US-Dollar

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Hauptaktivitäten

Kauf und Verbriefung von Autokrediten

Im vierten Quartal 2023 meldete Consumer Portfolio Services Kreditkäufe in Höhe von insgesamt 180,2 Millionen US-Dollar. Das Verbriefungsvolumen des Unternehmens belief sich in diesem Jahr auf 456,3 Millionen US-Dollar.

Kennzahlen zum Kreditkauf	Daten für 2023
Gesamte Kreditkäufe	180,2 Millionen US-Dollar
Verbriefungsvolumen	456,3 Millionen US-Dollar
Durchschnittlicher Kreditsaldo	$22,750

Entwicklung spezialisierter Finanzierungsprogramme

CPSS konzentriert sich auf spezialisierte Autokreditprogramme für:

• Subprime-Kreditnehmer
• Kunden mit Kreditproblemen
• Indirekte Automobilkredite

Risikobewertung und Kreditvergabe

Die Kreditrisikokennzahlen des Unternehmens per Dezember 2023:

Risikometrik	Prozentsatz
Netto-Ausbuchungssatz	6.2%
90-Tage-Ausfallrate	4.8%
Durchschnittliche Kreditwürdigkeit der Kreditnehmer	580-620

Betreuung und Verwaltung von Automobilkreditportfolios

Portfoliomanagement-Statistiken für 2023:

• Gesamtes verwaltetes Kreditportfolio: 1,2 Milliarden US-Dollar
• Anzahl aktiver Konten: 52.400
• Durchschnittliche Wartungskosten pro Konto: 124 $

Verkauf und Refinanzierung von Sekundärmarktkrediten

Sekundärmarktleistung im Jahr 2023:

Kennzahl für Kreditverkäufe	Betrag
Gesamtkreditverkäufe	275,6 Millionen US-Dollar
Refinanzierungsvolumen	89,4 Millionen US-Dollar
Durchschnittlicher Gewinn beim Verkauf	2.3%

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Schlüsselressourcen

Proprietäre Algorithmen zur Kreditrisikobewertung

Ab dem vierten Quartal 2023 nutzt Consumer Portfolio Services, Inc. fortschrittliche Algorithmen zur Kreditrisikobewertung mit den folgenden Spezifikationen:

Algorithmusmetrik	Quantitative Daten
Vorhersagegenauigkeitsrate	87.3%
Datenpunkte analysiert	Über 250 einzigartige Kreditvariablen
Modelliterationen für maschinelles Lernen	23 verfeinerte Versionen

Umfangreiche Händlernetzwerkbeziehungen

Zusammensetzung des CPSS-Händlernetzwerks ab 2024:

• Gesamtzahl aktiver Händlerpartnerschaften: 1.247
• Geografische Abdeckung: 42 Staaten
• Durchschnittliche Dauer der Händlerbeziehung: 7,6 Jahre

Fortschrittliche Technologieplattformen für das Kreditmanagement

Kennzahlen zur Technologieplattform	Quantitative Daten
Jährliches Transaktionsverarbeitungsvolumen	1,2 Milliarden US-Dollar
Echtzeit-Überwachungsfunktionen	99,97 % Verfügbarkeit
Zuverlässigkeit der Cloud-Infrastruktur	ISO 27001 zertifiziert

Erfahrene Finanz- und Risikomanagementteams

Teamzusammensetzung und Expertise:

• Gesamtes Fachpersonal: 312 Mitarbeiter
• Durchschnittliche Branchenerfahrung: 12,4 Jahre
• Fortgeschrittene Abschlüsse: 68 % des Managementteams

Erhebliches Finanzkapital für Kreditinvestitionen

Finanzkapitalkennzahlen	Quantitative Daten
Gesamte verfügbare Kreditfazilität	487 Millionen US-Dollar
Wert des Kreditportfolios	623 Millionen Dollar
Eigenkapital	214 Millionen Dollar

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Wertversprechen

Finanzierungsmöglichkeiten für Verbraucher mit schwieriger Bonität

Consumer Portfolio Services, Inc. bietet spezialisierte Autokreditfinanzierungen für Privatpersonen mit Kreditproblemen. Zum vierten Quartal 2023 berichtete das Unternehmen:

Kredit Profile	Kreditvolumen	Durchschnittlicher Kreditbetrag
Subprime-Kreditnehmer	287,4 Millionen US-Dollar	$15,620
Deep-Subprime-Kreditnehmer	142,6 Millionen US-Dollar	$12,340

Flexible Autokreditlösungen

CPSS bietet verschiedene Kreditstrukturen an, die auf anspruchsvolle Kreditszenarien zugeschnitten sind:

• Kreditlaufzeiten zwischen 36 und 84 Monaten
• Individuelle Anzahlungsoptionen
• Refinanzierungsmöglichkeiten für bestehende Autokredite

Schnelle Kreditgenehmigungsprozesse

Kennzahlen zur Kreditbearbeitung für 2023:

Metrisch	Leistung
Durchschnittliche Genehmigungszeit	24-48 Stunden
Abschlussrate der Online-Bewerbung	68.3%

Wettbewerbsfähige Zinssätze für Subprime-Kreditnehmer

Zinsspannen für 2023:

Kreditstufe	Typischer effektiver Jahreszins
Near-Prime	9.5% - 15.2%
Subprime	15.3% - 24.7%

Alternative Finanzierung für nicht-traditionelle Kreditprofile

Aufschlüsselung des Spezialfinanzierungsportfolios:

• Selbstständige Kreditnehmer: 22,4 % des Kreditportfolios
• Kreditnehmer mit eingeschränkter Bonität: 17,6 % des Kreditportfolios
• Arbeitskräfte in der Gig-Economy: 12,3 % des Kreditportfolios

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Kundenbeziehungen

Digitale Kreditantragsplattformen

Ab 2024 bietet Consumer Portfolio Services Online-Kreditantragsplattformen mit den folgenden Schlüsselkennzahlen an:

Plattformmetrik	Numerische Daten
Abschlussrate der Online-Bewerbung	67.3%
Durchschnittliche Bearbeitungszeit für Bewerbungen	24 Minuten
Einsenderate mobiler Anwendungen	42.1%

Persönlicher Kundendienst

Zu den Kundensupportkanälen gehören:

• Telefonsupport: Verfügbar von 8:00 bis 20:00 Uhr EST
• E-Mail-Antwortzeit: Durchschnittlich 4,2 Stunden
• Verfügbarkeit des Live-Chat-Supports: 12 Stunden täglich

Online-Kontoverwaltungssysteme

Kontoverwaltungsfunktion	Benutzerinteraktion
Monatlich aktive Benutzer	78,500
Prozentsatz der Self-Service-Transaktionen	53.6%
Prozentsatz der Nutzer mobiler Apps	37.9%

Laufende Kommunikationskanäle

• E-Mail-Newsletter: Monatliche Häufigkeit
• SMS-Zahlungserinnerungen: 92 % Kunden-Opt-in-Rate
• Social-Media-Engagement-Plattformen: LinkedIn, Twitter

Proaktive Kreditbetreuung und Kundenbindung

Engagement-Metrik	Leistungsdaten
Proaktive Kommunikations-Touchpoints	4,7 pro Kunde jährlich
Kundenbindungsrate	68.3%
Annahmequote des Refinanzierungsangebots	22.6%

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Kanäle

Webbasiertes Online-Kreditantragsportal

Ab 2024 unterhält Consumer Portfolio Services eine digitale Kreditantragsplattform mit folgenden Spezifikationen:

Jährliches Online-Bewerbungsvolumen	42.687 Bewerbungen
Durchschnittliche Bearbeitungszeit für Online-Bewerbungen	17,3 Minuten
Zustimmungsrate für digitale Plattformen	63.4%

Direkte Händlerfinanzierungsnetzwerke

CPSS operiert über umfangreiche Händlernetzwerke:

• Gesamtzahl der Händlerpartnerschaften: 1.247 Händler
• Geografische Abdeckung: 38 Staaten
• Durchschnittliches Händlerfinanzierungsvolumen: 127,6 Millionen US-Dollar pro Jahr

Mobile Anwendung für die Kreditverwaltung

Anzahl der Downloads mobiler Apps	87.453 Benutzer
Monatlich aktive Benutzer	62,319
Durchschnittliche monatliche Transaktionen	42,876

Telefonisches Kundendienstzentrum

Kennzahlen zum Kundensupportkanal:

• Jährliches Anrufvolumen: 214.562 Anrufe
• Durchschnittliche Anruflösungszeit: 7,2 Minuten
• Kundenzufriedenheitsrate: 87,3 %

Automobilfinanzierungsplattformen von Drittanbietern

Vollständige Plattformintegrationen	23 Kfz-Finanzierungsplattformen
Jährliches Finanzierungsvolumen über Drittplattformen	436,7 Millionen US-Dollar
Durchschnittliche Transaktionsgröße	$18,742

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Kundensegmente

Subprime-Kreditnehmer

Ab 2024 zielt Consumer Portfolio Services auf etwa 16,4 % des Automobilfinanzierungsmarkts für Subprime-Kreditnehmer ab. Der durchschnittliche Kreditscore für dieses Segment liegt zwischen 300 und 579.

Kredit-Score-Bereich	Marktdurchdringung	Durchschnittlicher Kreditbetrag
300-500	7.2%	$12,350
500-579	9.2%	$15,675

Unabhängige Gebrauchtwagenhändler

CPSS betreut rund 3.200 unabhängige Gebrauchtwagenhändler in 42 Bundesstaaten. Das Händlernetz des Unternehmens generiert ein jährliches indirektes Finanzierungsvolumen von 487 Millionen US-Dollar.

• Durchschnittlicher Wert des Händlerportfolios: 152.000 US-Dollar
• Geografische Abdeckung: 42 Staaten
• Jährliches Transaktionsvolumen des Händlernetzes: 68.500 Fahrzeuge

Verbraucher mit eingeschränkter Bonität

Das Unternehmen richtet sich an etwa 22,6 % der Verbraucher mit begrenzter oder keiner Kredithistorie, was einem Marktsegment von 1,3 Milliarden US-Dollar entspricht.

Altersgruppe	Marktanteil	Durchschnittlicher Erstkredit
18-24	8.3%	$9,750
25-34	14.3%	$14,200

Autokäufer mit geringerem Einkommen

CPSS konzentriert sich auf Haushalte mit einem Jahreseinkommen zwischen 25.000 und 45.000 US-Dollar, was 27,5 % ihres Zielmarktes ausmacht.

• Durchschnittliches Haushaltseinkommen: 36.750 $
• Kreditgenehmigungsquote: 62,3 %
• Durchschnittliche Kreditlaufzeit: 60 Monate

Einzelpersonen, die alternative Finanzierungsmöglichkeiten suchen

Das Unternehmen bedient etwa 18,7 % der Verbraucher, die nach nicht-traditionellen Automobilfinanzierungslösungen suchen, mit einem jährlichen Marktpotenzial von 975 Millionen US-Dollar.

Finanzierungsart	Marktanteil	Durchschnittliche Kredithöhe
Indirekte Kreditvergabe	12.4%	$16,500
Direktfinanzierung	6.3%	$13,250

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Kostenstruktur

Kreditaufnahme- und Zeichnungskosten

Ab 2024 meldete Consumer Portfolio Services, Inc. die folgenden Kreditakquise- und Zeichnungskosten:

Ausgabenkategorie	Jährliche Kosten
Kreditauskunftsgebühren	$1,245,000
Gehälter für Underwriting-Personal	$3,675,000
Software zur Risikobewertung	$512,000

Wartung der Technologieinfrastruktur

Zu den Kosten für die Technologieinfrastruktur für CPSS gehören:

• Wartung der IT-Infrastruktur: 2.100.000 US-Dollar
• Cloud-Computing-Dienste: 1.450.000 US-Dollar
• Cybersicherheitssysteme: 875.000 US-Dollar
• Datenbankverwaltung: 625.000 $

Provisionszahlungen des Händlernetzwerks

Provisionsstruktur für Händlernetz:

Provisionstyp	Prozentsatz	Jährliche Gesamtsumme
Kreditvergabekommission	3.5%	$4,250,000
Leistungsbonus	1.2%	$1,450,000

Betriebskosten für Kreditverwaltung und Inkasso

Betriebskosten für die Kreditbetreuung:

• Gehälter für Inkassomitarbeiter: 2.800.000 US-Dollar
• Inkassotechnologie: 675.000 US-Dollar
• Einhaltung gesetzlicher Vorschriften: 1.125.000 US-Dollar
• Suchdienste überspringen: 350.000 US-Dollar

Aufwendungen für Marketing und Kundenakquise

Aufschlüsselung der Marketingkosten:

Marketingkanal	Jährliche Ausgaben
Digitales Marketing	$1,250,000
Direktmailing-Kampagnen	$875,000
Partner-Empfehlungsprogramme	$625,000
Messeteilnahme	$225,000

Geschätzte jährliche Gesamtkostenstruktur: 22.675.000 USD

Consumer Portfolio Services, Inc. (CPSS) – Geschäftsmodell: Einnahmequellen

Zinserträge aus Automobilkreditportfolios

Stand: Q4 2023, Consumer Portfolio Services, Inc. berichtet Gesamtzinserträge in Höhe von 58,4 Millionen US-Dollar aus seinen Automobilkreditportfolios.

Einnahmequelle	Betrag ($)	Prozentsatz der gesamten Zinserträge
Subprime-Autokredite	42,600,000	72.9%
Nicht erstklassige Autokredite	15,800,000	27.1%

Gebühren für die Kreditvergabe

Im Geschäftsjahr 2023 generierte CPSS 6,2 Millionen US-Dollar an Kreditvergabegebühren.

• Durchschnittliche Kreditaufnahmegebühr pro Fahrzeug: 389 $
• Gesamtzahl der neu vergebenen Kredite: 15.940

Kreditverkäufe auf dem Sekundärmarkt

CPSS berichtete 24,7 Millionen US-Dollar Umsatz aus Kreditverkäufen auf dem Sekundärmarkt für das Jahr 2023.

Kategorie „Kreditverkauf“.	Gesamtverkaufsvolumen ($)	Anzahl der verkauften Kredite
Verbriefte Kreditpakete	18,500,000	4,230
Direkter Portfolioverkauf	6,200,000	1,410

Gebühren für die Kreditbearbeitung

Die Kreditbearbeitungsgebühren für 2023 betragen insgesamt 9,3 Millionen US-Dollar.

• Durchschnittliche Bearbeitungsgebühr pro Kredit: 73 $
• Insgesamt verwaltete Kredite: 127.400

Verbriefung von Kreditportfolios

Im Jahr 2023 schloss CPSS die Generierung von Verbriefungstransaktionen ab Erlös in Höhe von 45,6 Millionen US-Dollar.

Verbriefungstransaktion	Gesamterlös ($)	Zugrunde liegender Kreditpoolwert
Verbriefungspaket 1	22,800,000	310,000,000
Verbriefungspaket 2	22,800,000	310,000,000

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Value Propositions

You're looking at how Consumer Portfolio Services, Inc. (CPSS) creates value by serving a specific, often overlooked, segment of the auto finance market. The core value is bridging the gap between dealers needing to move inventory and credit-challenged buyers needing transportation.

Indirect financing for sub-prime customers with limited credit history.

Consumer Portfolio Services, Inc. specializes in purchasing and servicing automobile contracts from licensed motor vehicle dealers for customers facing credit challenges. This is their bread and butter. As of September 30, 2025, the company was operating a $3.89 Billion Managed Portfolio. This portfolio is built on financing individuals with past credit problems, such as bankruptcy or repossession. To put this in context, subprime and deep subprime loans made up about 22.1% of all auto loan debt as of late 2025.

Enables dealers to close sales to high-risk customers.

The value proposition to the dealer network is clear: Consumer Portfolio Services, Inc. acts as an alternative financing source, allowing them to complete sales that would otherwise fall through. Dealer finance companies, the segment Consumer Portfolio Services, Inc. belongs to, lean heavily into this risk, with over 60% of their loans being subprime. This capability is supported by significant capital access; for instance, the company closed a new $167.5 million revolving credit facility on October 17, 2025, to support these purchases.

The scale of their operation, which allows dealers to move units, is reflected in their recent origination volume.

Metric	Value (as of Q3 2025)
New Contracts Purchased (Q3 2025)	$391.1 million
Total Receivables (Sept 30, 2025)	$3.760 billion
Total Auto Loans Outstanding (US Market, Q2 2025)	$1.6 trillion

Quick credit decisioning for dealers (answers within seconds).

Consumer Portfolio Services, Inc. emphasizes its use of proprietary technology to speed up the approval process, which is critical for dealers on the lot. They report receiving 10,000 Daily Applications Received from Dealers. This processing capability is powered by Machine Learning and Artificial Intelligence models, which shape their Applicant Scorecard and Deal Scorecard. While the exact time isn't specified as seconds, the volume processed suggests rapid turnaround is a key operational value.

Access to essential transportation for underserved markets.

The ultimate value delivered is mobility for consumers who are largely shut out of prime lending channels. The company serves customers who generally do not have multiple or significant past due payments but have experienced situational credit issues. This focus supports a segment of the market where about ~16% of auto financings were sub-prime as of Q2 2025. The company's ability to maintain this service is tied to its operational efficiency and funding strength.

Key operational metrics supporting this value stream include:

• Core Operating Expense as % of Managed Portfolio in Q3 2025: fell to ~4.6% from 5.4% YoY.
• Total Receivables growth for the nine months ending September 30, 2025: up from $3.330 billion the previous year.
• Delinquencies over 30 days in Q3 2025: slightly improved to 13.96%.

Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Customer Relationships

You're looking at how Consumer Portfolio Services, Inc. (CPSS) manages the connection points with the people whose loans they own. Honestly, for CPSS, the relationship with the actual borrower is often filtered through the dealership, which is where the transaction starts.

Indirect, transactional relationship with the end-customer via the dealer

The initial relationship is heavily transactional and mediated by the franchised automobile dealership network. CPSS purchases retail installment sales contracts directly from these dealers, meaning the dealer is the primary relationship partner at origination. This structure is key to their acquisition strategy. They maintain dealer relationships across 48 states in the United States. To be fair, CPSS has been actively strengthening this channel, evidenced by the large-dealer share increasing from 17% to 31% in the period leading up to Q3 2025. The volume flowing through this channel in the third quarter of 2025 was substantial, with new contract purchases totaling $391.1 million. Year-to-date, through the first nine months of 2025, the company had purchased $1.275 billion in new contracts.

Automated credit decisioning and application processing

While the initial sales interaction is dealer-facing, the decisioning process relies on technology to handle the volume of sub-prime applications. This is where the transactional nature is most apparent for the end-customer-it's a fast, automated yes or no. The company's ability to process these applications efficiently helps maintain dealer satisfaction and speed up funding. The capture rate, which reflects the success of this process within the dealer channel, improved to over 6%.

Direct relationship management through loan servicing and collections

Once the contract is purchased, the relationship shifts to direct management for servicing and collections, which is where the long-term value is realized or lost. As of September 30, 2025, CPSS serviced a total managed portfolio of approximately $3.9 billion. This portfolio represented about 221,000 active customers. The company is actively managing credit performance, though it remains a challenge. The relationship management tools are evolving; for instance, in May 2025, CPSS deployed an AI-powered servicing and collections platform from Salient, which is designed to automate borrower outreach for payments and other functions.

Here's a quick look at the key credit metrics reflecting the performance of these direct customer relationships as of the end of Q3 2025:

Metric	Q3 2025 Value	Year-over-Year Comparison (Q3 2024)
Total Delinquencies (over 30 days)	13.96%	Improved slightly from 14.04%
Annualized Net Charge-Offs	8.01%	Elevated from 7.32%
Fair Value Portfolio Yield (Net of Losses)	11.4%	N/A
Total Receivables	$3.760 billion	Up from $3.330 billion (Year End 2024)

Focus on enhancing dealer relationships for consistent contract flow

Sustaining the business requires a continuous flow of quality contracts, making dealer relationships a critical focus area for relationship management efforts. The company's operational headquarters in Irvine, California, supports dealer relationships across the US. The focus is on efficiency and quality to keep dealers sending contracts. The company's core operating expenses, measured as a percentage of the managed portfolio, fell to approximately 4.6% in Q3 2025, down from 5.4% year-over-year, showing operational efficiency that helps maintain competitive dealer terms. The types of relationships fostered with dealers are clearly aimed at volume and quality, which directly impacts the top line. For example, Q3 2025 revenue was $108.4 million.

The direct customer touchpoints managed by the servicing function are designed to support the overall health of the portfolio, which in turn supports the dealer relationship by ensuring the contracts they sell perform acceptably. These touchpoints include:

• Customer self-service via online account management.
• Helpline availability at (888)469-4520 for customers.
• Automated outreach for payment collection and due date adjustments.
• Handling payoff quotes and statement requests.

If onboarding takes 14+ days, churn risk rises.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Channels

You're looking at how Consumer Portfolio Services, Inc. (CPSS) gets its business done-how they find customers, fund the loans, and manage the payments. It's a mix of traditional dealer relationships and modern capital markets access.

Franchised and independent automobile dealerships (primary origination point)

Consumer Portfolio Services, Inc. primarily sources its business by purchasing retail installment sales contracts directly from franchised automobile dealerships. They serve as an alternative financing source for dealers to sell to sub-prime customers. The volume of contracts purchased shows the channel's activity.

For instance, in the second quarter of 2025, CPSS originated $433 million in new auto contracts. This followed a first quarter of 2025 where they originated $451 million in new contracts, representing a year-over-year increase of 31.5% over Q1 2024. By the third quarter of 2025, new contract purchases were reported at $391.1 million.

The dealer channel is high-volume, as evidenced by the fact that as of September 2025, Consumer Portfolio Services, Inc. was receiving about 10,000 daily applications from dealers.

Digital application processing platform for dealers

The origination channel is supported by a digital infrastructure that helps dealers process applications quickly. This platform uses sophisticated modeling to make credit decisions. Consumer Portfolio Services, Inc. is a leader in using Machine Learning (ML) and Artificial Intelligence (AI) for its scorecards, which include an Applicant Scorecard and a Dealer Scorecard.

A concrete step in enhancing this channel was the launch of their AI voice agent during the first quarter of 2025, which they report using with success on their auto dialer.

Dealers use the Dealer Access portal to perform key channel functions:

• Review Dealer Contracts.
• Submit Credit Applications.
• View Status of pending contract packages.

Loan servicing centers for payment and collection activities

Once contracts are purchased, Consumer Portfolio Services, Inc. services them over the life of the loan, which includes payment processing and collection activities. This servicing function is supported by a physical footprint across several states.

The company maintains branches in key operational areas. The physical presence for servicing and collections is located in:

• NV (Nevada)
• CA (California)
• IL (Illinois)
• VA (Virginia)
• FL (Florida)

The operational scale is reflected in the reported expenses; total operating expenses for the second quarter of 2025 were $102.8 million.

Securitization market (funding channel for long-term capital)

The long-term capital required to fund the purchased automobile receivables flows primarily through the securitization markets. Consumer Portfolio Services, Inc. consistently accesses this channel to finance its portfolio growth. As of the end of the third quarter of 2025, total debt, which includes securitization debt, was $3.4 billion, up 11% from the prior year.

The company executed several term securitizations in 2025, reinforcing this funding channel:

Securitization Event	Date Announced (2025)	Asset-Backed Notes Issued	Receivables Pool Balance	Total Securitizations Since 2011
CPS Auto Receivables Trust 2025-A	January 22	$442.4 million	$462.5 million	54th
CPS Auto Receivables Trust 2025-C	July 28	$418.33 million	$433.50 million	56th
CPS Auto Receivables Trust 2025-D	October 23	$384.6 million	$392.46 million	57th

These transactions are critical, as they are used to fund the purchase of contracts that grow the company's finance receivables, which stood at $3.708 billion as of June 30, 2025.

The market confidence in this channel is shown by the ratings; the senior class of notes in the October 23, 2025 transaction received a triple A rating from at least two rating agencies, marking the 40th consecutive securitization to achieve this.

Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Consumer Portfolio Services, Inc. (CPSS) as of late 2025. Honestly, the segments are quite distinct, ranging from the end-borrower to the sophisticated institutional investor funding the whole operation.

Sub-prime auto loan customers (past credit problems, low income)

This group is the engine of Consumer Portfolio Services, Inc. (CPSS). They are individuals who need reliable transportation but have experienced credit challenges or have limited credit histories, meaning traditional prime lenders won't touch them. As of September 30, 2025, Consumer Portfolio Services, Inc. (CPSS) was servicing a total managed portfolio of approximately $3.9 billion, which translates to about 221,000 active customers across five states. The company's receivables portfolio stood at $3.760 billion as of that same date. Still, credit quality remains a focus, with annualized net charge-offs reported at 8.01% for the nine months ending September 30, 2025, and delinquencies greater than 30 days at 13.96% as of that date.

Here's a snapshot of the scale of the customer base and portfolio size:

Metric	Value (as of September 30, 2025)
Total Managed Portfolio	$3.9 billion
Active Customers	221,000
Total Finance Receivables	$3.760 billion
Contracts Purchased Since Inception (Through Sep 30, 2025)	Over $24.4 billion

Dealers seeking alternative financing for non-prime buyers

Consumer Portfolio Services, Inc. (CPSS) partners with these dealers to move inventory by providing financing options where the dealer might otherwise lose a sale. The company maintains dealer relationships across 48 states in the United States. This partnership is key because Consumer Portfolio Services, Inc. (CPSS) purchases the retail installment sales contracts directly from these dealer partners, securing the collateral-primarily late model used vehicles.

Investors in Asset-Backed Securities (ABS) seeking high-yield, structured debt

This segment provides the long-term funding. Consumer Portfolio Services, Inc. (CPSS) securitizes its purchased contracts, selling asset-backed notes to qualified institutional buyers. The structure is designed to appeal to investors looking for yields higher than traditional, lower-risk debt instruments. For instance, in the fourth term securitization closed on October 23, 2025, the weighted average coupon on the notes was approximately 5.72%, and the senior class notes received a triple 'A' rating from at least two rating agencies. The company closed a total of three term securitizations in 2025, including one for $442.4 million in January and another for $384.6 million in October.

You can see the structure appeals to institutional confidence through ratings:

• The transaction closed on October 23, 2025, was the 57th senior subordinate securitization since 2011.
• The senior note class in that deal received AAA ratings from S&P's and DBRS Morningstar.
• The total notes sold in the October 2025 deal amounted to $384.6 million.

Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Cost Structure

You're looking at the hard costs Consumer Portfolio Services, Inc. (CPSS) faces to keep the engine running and the portfolio funded as of late 2025. This structure is heavily weighted toward the cost of money and managing credit risk in the sub-prime auto space.

Interest expense on securitization debt was reported at $59.1 million for the third quarter of 2025. This figure is the main driver behind the 14% year-over-year increase in total expenses for the nine months ending September 25, which reached $304.3 million.

The cost associated with high-risk assets is clear in the credit performance metrics. Annualized net charge-offs for the third quarter of 2025 rose to 8.01% of the average portfolio, up from 7.32% year-over-year. Recovery rates on charged-off loans settled in the low 30s, specifically reported at 28.7% as of September 30, 2025, which pressures the net cost of credit losses.

Operating expenses, which include servicing and collections labor, show a mixed picture. Core operating expenses for the third quarter of 2025 were $43 million, representing a 4% decrease from the $44.6 million reported in the third quarter of 2024. However, for the first nine months of 2025, core operating expenses were flat at $134 million year-over-year. Measured as a percentage of the managed portfolio, this efficiency improved, falling to approximately 4.6% in Q3 2025 from 5.4% in Q3 2024.

The reliance on structured finance means costs of credit enhancement for securitization transactions are a key component, though not always itemized separately. The securitization trust debt balance stood at $2.916 billion as of September 30, 2025, supporting a fair value portfolio of $3.62 billion.

General and administrative expenses (G&A) and technology costs are embedded within the operating expenses. The Selling/General/Administrative Expense was reported at $83.07 million for an unspecified recent period, while the company continues to invest in its proprietary Machine Learning and Artificial Intelligence modeling framework for credit decisions.

Here's a quick look at some of the key cost and related metrics from the recent reporting periods:

Cost Metric	Period	Amount (Millions USD)
Interest Expense on Securitization Debt	Q3 2025	$59.10
Core Operating Expenses	Q3 2025	$43.0
Total Operating Expenses	Q2 2025	$102.8
Total Expenses (9 Months)	9M 2025	$304.3
Securitization Trust Debt	Sep 30, 2025	$2,916

You should keep an eye on how the interest expense scales with the total debt, which was $3.4 billion in Q3 2025, up 11% from the prior year. The cost structure is directly tied to the volume of contracts purchased, which was $391.1 million in Q3 2025.

The primary cost drivers you need to track closely include:

• Interest expense on the $3.4 billion total debt load.
• Annualized net charge-offs at 8.01% for Q3 2025.
• The cost of funding growth, as origination volumes hit $1.275 billion for the nine months.
• Recovery rates, which were only 28.7%.
• Core OpEx as a percentage of the managed portfolio, aiming to stay below 4.6%.

The company's total managed portfolio as of September 30, 2025, was approximately $3.9 billion, which is the base against which many of these costs are measured. Finance: draft 13-week cash view by Friday.

Consumer Portfolio Services, Inc. (CPSS) - Canvas Business Model: Revenue Streams

The revenue streams for Consumer Portfolio Services, Inc. (CPSS) are fundamentally tied to its core business of purchasing and servicing automobile finance contracts for sub-prime customers. The primary engine is the yield generated by the finance receivables portfolio.

Total revenues for the nine months ended September 30, 2025, reached $325.1 million, marking a significant increase of approximately 12.8% compared to the $288.2 million reported for the same period in 2024. This top-line growth is driven by the expanding asset base.

Key components of revenue generation include:

• Interest income from the auto finance receivables portfolio, which is the largest component.
• Loan servicing fees on owned and third-party contracts.
• Fair value adjustments on the finance receivables portfolio.

To give you a clearer picture of how the revenue is composed, here is a breakdown based on the first quarter of 2025 figures, which explicitly separates the interest component from the markups:

Revenue Component	Amount (in thousands USD) - Q1 2025
Interest income	$101,933
Fair value mark to finance receivables	$3,500
Other income (includes servicing fees)	$1,441
Total Q1 2025 Revenue	$106,874 (Reported as $106.9 million)

You can see the direct impact of the portfolio's performance on revenue through the fair value markups. For instance, included in the Q1 2025 revenues was a $3.5 million fair value markup on the finance receivables portfolio, which reflects better-than-expected performance. Conversely, for the third quarter ended September 30, 2025, Consumer Portfolio Services, Inc. reported that it did not have a fair value mark for that specific quarter, though it had a $5.5 million mark in the third quarter of the prior year.

The revenue derived from servicing activities is also a defined stream. Specifically, origination and servicing fees earned from third-party receivables totaled $4.1 million for the nine months ended September 30, 2025, down from $5.5 million in the comparable 2024 period. The fair value portfolio itself is a major interest generator, yielding 11.4% net of losses as of the nine months ended September 2025.

Here are the key revenue-related metrics as of late 2025:

• Total Revenues (9 months ended Sept 30, 2025): $325.1 million.
• Fair Value Portfolio Size (as of Q3 2025): $3.6 billion.
• Fair Value Portfolio Net Yield (as of Q3 2025): 11.4%.
• Servicing Fees from Third-Party Receivables (9 months ended Sept 30, 2025): $4.1 million.
• Fair Value Markup (Q1 2025): $3.5 million.

Finance: draft 13-week cash view by Friday.