Consumer Portfolio Services, Inc. Reports 2008 Third Quarter Results

Market Wire, October, 2008

Consumer Portfolio Services, Inc. (NASDAQ: CPSS) ("CPS" or the "Company") today announced results for its third quarter ended September 30, 2008.

Total revenues for the third quarter of 2008 decreased approximately $11.1 million, or 10.8%, to $91.7 million, compared to $102.8 million for the third quarter of 2007. Total operating expenses for the third quarter of 2008 were $104.4 million, an increase of $7.9 million, or 8.2%, as compared to $96.4 million for the 2007 period.

Net loss for the third quarter of 2008 was $(6.3) million, or $(0.32) per diluted share, compared to net income of $3.7 million, or $0.16 per diluted share, for the year-ago quarter. The financial results for the third quarter of 2008 were negatively impacted by the completion of the previously announced structured whole loan sale in September 2008. The Company incurred a loss on the transaction as the effective purchase price of the sold receivables was less than the carrying value on the Company's balance sheet.

For the nine months ended September 30, 2008, total revenues increased approximately $8.8 million, or 3.1%, to $293.8 million, compared to $285.0 million for the nine months ended September 30, 2007. Total expenses for the nine months ended September 30, 2008 were $300.0 million, an increase of $32.9 million, or 12.3%, as compared to $267.1 million for the nine months ended September 30, 2007.

Net loss for the nine months ended September 30, 2008 was $(2.7) million, or $(0.14) per diluted share, compared to net income of $10.4 million, or $0.45 per diluted share, for the nine months ended September 30, 2007. As discussed above, the financial results for the third quarter of 2008 were negatively impacted by the completion of the previously announced structured whole loan sale in September 2008.

During the third quarter of 2008, CPS purchased $33.6 million of contracts from dealers as compared to $79.8 million during the second quarter of 2008 and $340.2 million during the third quarter of 2007. During the first nine months of 2008, CPS purchased $289.6 million of contracts from dealers as compared to $1,016.5 million during the first nine months of 2007. The Company's managed receivables totaled $1,829.5 million as of September 30, 2008, as compared to $2,053.1 million as of September 30, 2007, as follows ($ in millions):

                                                September 30, September 30,
Originating Entity                                  2008          2007
                                                ------------- -------------
CPS                                             $     1,606.6 $     1,987.7
TFC                                                      27.0          63.1
MFN                                                       0.0           0.2
SeaWest                                                   0.2           1.4
As Third Party Servicer                                 195.7           0.7
                                                ------------- -------------
     Total                                      $     1,829.5 $     2,053.1

As previously reported, in September 2008 the Company completed a structured whole loan sale with the sale of $199 million of automobile purchase receivables. In addition, the Company extended the maturity of one of its warehouse credit facilities from September 30, 2008 to November 28, 2008.

Annualized net charge-offs during the first nine months of 2008 were 7.2% of the average owned portfolio as compared to 5.0% during the same period in 2007. Delinquencies greater than 30 days (including repossession inventory) were 7.7% of the total owned portfolio as of September 30, 2008, as compared to 6.1% as of September 30, 2007. The increase in net charge-off and delinquency percentages can be partly attributed to the aging of the portfolio and the decrease in the size of the managed portfolio as new contract purchases have not replaced portfolio run-off.

"While the completion of the whole loan sale negatively impacted our earnings, the quality of our franchise allowed us to access liquidity during this very difficult capital markets environment," said Charles E. Bradley, Jr., Chief Executive Officer. "We expect the operating landscape to be challenging in the near term and have made adjustments to our business accordingly. We have scaled back our operating infrastructure to focus on servicing our portfolio and maximizing collections while maintaining our best dealer relationships. With these moves, we feel confident in our ability to weather the current economic turbulence and should be well positioned to exploit a tremendous industry opportunity once the capital markets stabilize."

Conference Call

CPS announced that it will hold a conference call tomorrow, October 29, 2008, at 1:30 p.m. EDT to discuss its quarterly earnings. Those wishing to participate by telephone may dial-in at 973-582-2717 approximately 10 minutes prior to the scheduled time.

A replay will be available between October 29, 2008 and November 5, 2008, beginning one hour after conclusion of the call, by dialing 800-642-1687 or 706-645-9291 for international participants, with pin number 68472980. A broadcast of the conference call will also be available live and for 30 days after the call via the Company's web site at www.consumerportfolio.com and at www.streetevents.com .