Consumer Portfolio Services, Inc. Reports 2009 Second Quarter Operating Results

IRVINE, CA--(Marketwire - August 14, 2009) - Consumer Portfolio Services, Inc. (NASDAQ: CPSS)
("CPS" or the "Company") today announced operating results for its second
quarter ended June 30, 2009.

Total revenues for the second quarter of 2009 were $58.3 million, a
decrease of approximately $40.5 million, or 41.0%, compared to $98.8
million for the second quarter of 2008. Total operating expenses for the
second quarter of 2009 were $64.3 million, a decrease of $31.8 million, or
33.1%, as compared to $96.1 million for the 2008 period. Pretax loss for
the second quarter of 2009 was $(6.0) million compared to pretax income of
$2.7 million in the second quarter of 2008. Net loss for the second
quarter of 2009 was $(6.0) million, or $(0.32) per diluted share, compared
to net income of $1.5 million, or $0.08 per diluted share, for the year-ago
quarter.

For the six months ended June 30, 2009, total revenues decreased
approximately $77.7 million, or 38.5%, to $124.4 million, compared to
$202.1 million for the six months ended June 30, 2008. Total expenses for
the six months ended June 30, 2009 were $130.8 million, a decrease of $64.8
million, or 33.1%, as compared to $195.6 million for the six months ended
June 30, 2008.

The pretax loss for the six months ended June 30, 2009 was ($6.5) million,
compared to pretax income of $6.5 million for the six months ended June 30,
2008. Net loss for the six months ended June 30, 2009 was ($6.5) million,
or ($0.34) per diluted share, compared to net income of $3.6 million, or
$0.18 per diluted share, for the six months ended June 30, 2008.

During the second quarter of 2009, CPS purchased $937,000 of contracts from
dealers as compared to $1.1 million during the first quarter of 2009 and
$79.8 million during the second quarter of 2008. The Company's managed
receivables totaled $1,333.9 million as of June 30, 2009, a decrease of
$645.6 million, or 32.6%, from $1,979.5 million as of June 30, 2008, as
follows ($ in millions):

June 30, June 30,
2009 2008
--------- ---------

Owned by Consolidated Subsidiaries* $ 1,173.1 $ 1,979.4
Owned by Non-Consolidated Subsidiaries 160.8 0.0
As Third Party Servicer for SeaWest Financial 0.0 0.1
--------- ---------
Total $ 1,333.9 $ 1,979.5

* Before $86.0 million and $152.7 million of allowance for credit losses,
deferred acquisition fees and repossessed vehicles for 2009 and 2008,
respectively.

Annualized net charge-offs during the first half of 2009 quarter were
11.12% of the average owned portfolio as compared to 6.75% during the same
period in 2008. Delinquencies greater than 30 days (including repossession
inventory) were 6.99% of the total owned portfolio as of June 30, 2009, as
compared to 6.12% as of June 30, 2008. The increase in net charge-off and
delinquency percentages vs. the
year-ago period can be partly attributed to the aging of the portfolio and
the significant decrease in the size of the managed portfolio as nominal
new contract purchases have not replaced portfolio run-off.

"While our financial results for the second quarter continued to be
affected by the recession and the decline in our total managed portfolio,
we are cautiously optimistic that the worst of the contraction in the
economy and its impact on our customers is behind us," said Charles E.
Bradley, Jr., Chief Executive Officer. "Over the last few months we have
seen improvement in our early-stage asset performance metrics vs. the same
period last year. In addition, recoveries on liquidated vehicles at the
wholesale auction market have continued to improve and should be relatively
stable given increasing sales of used cars. Both of these developments
should bode well for delinquencies and charge-offs in the near future."

"On the capital markets front, during the quarter we were able to extend
the maturity of our residual financing facility for a year until June 2010,
which provides us with additional financial flexibility. The
securitization market continues to improve as well as the first subprime
auto deal this year was completed in July and yields required by investors
have decreased significantly since the first quarter."

Conference Call

CPS announced that it will hold a conference call next Monday, August 17,
2009, at 1:30 p.m. ET to discuss its quarterly operating results. 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 August 17, 2009 and August 24, 2009,
beginning one hour after conclusion of the call, by dialing 800-642-1687 or
706-645-9291 for international participants, with conference identification
number 25347904. 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.

About Consumer Portfolio Services, Inc.

Consumer Portfolio Services, Inc. is a specialty finance company engaged in
purchasing and servicing new and used retail automobile contracts
originated primarily by franchised automobile dealerships and to a lesser
extent by select independent dealers of used automobiles in the United
States. We serve as an alternative source of financing for dealers,
facilitating sales to sub-prime customers, who have limited credit history,
low income or past credit problems and who otherwise might not be able to
obtain financing from traditional sources.

Forward-looking statements in this news release include the Company's
recorded revenue, expense and provision for credit losses, because these
items are dependent on the Company's estimates of future losses. The
accuracy of such estimates may be adversely affected by various factors,
which include (in addition to risks relating to the economy generally) the
following: possible increased delinquencies; repossessions and losses on
retail installment contracts; incorrect prepayment speed and/or discount
rate assumptions; possible unavailability of qualified personnel, which
could adversely affect the Company's ability to service its portfolio;
possible increases in the rate of consumer bankruptcy filings or the
effects of recent changes in bankruptcy law, which could adversely affect
the Company's rights to collect payments from its portfolio; other changes
in government regulations affecting consumer credit; possible declines in
the market price for used vehicles, which could adversely affect the
Company's realization upon repossessed vehicles; and economic conditions in
geographic areas in which the Company's business is concentrated. All of
such factors also may affect the Company's future financial results, as to
which there can be no assurance.

Any implication that the results of the most recently completed quarter are
indicative of future results is disclaimed, and the reader should draw no
such inference. Factors such as those identified above in relation to
provision for credit losses may affect future performance.

Consumer Portfolio Services, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three months ended Six months ended
June 30, June 30,
-------------------- --------------------
2009 2008 2009 2008
--------- ---------- --------- ----------
Revenues:
Interest income $ 54,960 $ 94,856 $ 116,139 $ 194,218
Servicing fees 942 280 1,971 708
Other income 2,420 3,645 6,261 7,156
--------- ---------- --------- ----------
58,322 98,781 124,371 202,082
--------- ---------- --------- ----------
Expenses:
Employee costs 8,980 12,886 18,242 26,368
General and administrative 5,842 7,574 12,452 14,921
Interest 28,971 40,955 61,103 79,989
Provision for credit losses 18,489 30,894 34,578 65,803
Other expenses 1,993 3,763 4,458 8,518
--------- ---------- --------- ----------
64,275 96,072 130,833 195,599
--------- ---------- --------- ----------
Income before income taxes (5,953) 2,709 (6,462) 6,483
Income taxes - 1,220 - 2,880
--------- ---------- --------- ----------
Net income $ (5,953) $ 1,489 $ (6,462) $ 3,603
========= ========== ========= ==========

Earnings per share:
Basic $ (0.32) $ 0.08 $ (0.34) $ 0.19
Diluted (0.32) 0.08 (0.34) 0.18

Number of shares used in
computing earnings per share:
Basic 18,744 18,830 18,874 19,063
Diluted 18,744 19,411 18,874 19,692

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

June 30, December 31,
2009 2008
------------ ------------

Cash $ 21,506 $ 22,084
Restricted cash 139,580 153,479
------------ ------------
Total Cash 161,086 175,563
Finance receivables 1,130,705 1,417,343
Allowance for finance credit losses (43,597) (78,036)
------------ ------------
Finance receivables, net 1,087,108 1,339,307
Residual interest in securitizations 4,019 3,582
Deferred tax assets, net 52,727 52,727
Other assets 42,040 67,628
------------ ------------
$ 1,346,980 $ 1,638,807
============ ============

Accounts payable and other liabilities $ 23,807 $ 21,702
Warehouse line of credit 5,119 9,919
Residual interest financing 62,650 67,300
Securitization trust debt 1,128,158 1,404,211
Senior secured debt, related party 20,649 20,105
Subordinated debt 22,855 25,721
------------ ------------
1,263,238 1,548,958
------------ ------------

Shareholders' equity 83,742 89,849
------------ ------------
$ 1,346,980 $ 1,638,807
============ ============

Operating and Performance Data
($ in thousands) At and for the At and for the
Three months ended Six months ended
June 30, June 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------

Contract purchases 937 79,834 2,033 255,924

Total managed portfolio 1,333,919 1,979,492 1,333,919 1,979,492

Average managed portfolio 1,384,290 2,023,572 1,466,377 2,068,129

Net interest margin (1) 25,989 53,901 55,036 114,229

Risk adjusted margin (2) 7,500 23,007 20,458 48,426

Core operating expenses (3) 16,815 24,223 35,152 49,807
Annualized % of average
managed portfolio 4.86% 4.79% 4.79% 4.82%

Allowance for finance credit
losses as % of fin.
receivables 3.86% 4.63%

Aggregate allowance as % of
fin. receivables (4) 5.82% 5.91%

Delinquencies
31+ Days 4.29% 4.13%

Repossession Inventory 2.71% 1.99%

Total Delinquencies and
Repossession Inventory 6.99% 6.12%

Annualized net charge-offs as %
of average owned portfolio 10.59% 6.85% 11.12% 6.75%

(1) Interest income less interest expense.
(2) Net interest margin less provision for credit losses.
(3) Total expenses less interest and provision for credit losses.
(4) Includes allowance for finance credit losses and allowance for
repossession inventory.