Consumer Portfolio Services (CPS) is a specialty finance company that buys and services sub-prime auto loans originated by franchised and independent car dealerships across the U.S. CPS does not lend directly — when a dealer has a sub-prime borrower who needs financing, the application is submitted to CPS, typically through aggregators DealerTrack or Route One. If CPS approves, it purchases the installment contract from the dealer and then services the loan for its life, collecting payments, managing delinquencies, and handling repossessions. About 90% of contracts finance used vehicles. CPS makes money on the spread between the ~20% APR it earns on its loan portfolio and the cost of funding that portfolio through asset-backed securitizations (ABS). CPS warehouses newly purchased contracts on short-term credit lines, pools them, and sells them into ABS roughly quarterly, retaining the residual interest and continuing to service all loans. CPS has completed 107 securitizations totaling ~$22.4B since 1994. Profitability is driven by portfolio size, net interest margin, credit losses, and operating efficiency. As of year-end 2025, CPS had a managed portfolio of ~$3.9B across ~212,000 contracts. CPS's growth strategy includes expanding its sales force, growing dealer relationships, and launching a Generation 9 AI/ML credit scoring model that increased approval rates from the low 40% to low 50% range. CPS also entered a partnership with a large credit union to originate and service prime auto loans, with the credit union committed to buying up to $900M over 18 months — a fee-based business where CPS retains no credit risk.