Is Consumer Portfolio Services, Inc. a Buy?

Consumer Portfolio Services, Inc. (CPSS) operates as a specialized financial institution across the United States. Its primary business involves acquiring and managing retail automobile loan agreements, which are originated by both authorized and selected independent dealerships for the sale of new and pre-owned cars, light trucks, and passenger vans. Through the purchase of these auto contracts, CPSS indirectly provides funding to consumers with limited credit histories or previous credit challenges, who might otherwise struggle to secure vehicle financing. For dealerships, the company serves as a vital alternative financing option, enabling them to complete sales to customers often declined by commercial banks, credit unions, and manufacturer-affiliated finance companies. Beyond its core activities, CPSS also procures installment purchase contracts through specific merger and acquisition transactions, and acquires minor quantities of vehicle purchase money loans from non-affiliated lenders. Additionally, it offers direct financing solutions to sub-prime individuals for their purchase of new or used automobiles, light trucks, or passenger vans. The servicing of these automobile contracts is conducted through its branches located in California, Nevada, Virginia, Florida, and Illinois. Founded in 1991, Consumer Portfolio Services, Inc. maintains its corporate headquarters in Las Vegas, Nevada.