How This Subprime Auto Lender With 55 Straight Quarters Of Profit Is Standing Out From The Pack

Michael Lavin, President, COO and Chief Legal Officer of Consumer Portfolio Services Inc. CPSS, was recently a guest on Benzinga's All-Access. 

Consumer Portfolio Services is a specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. It buys contracts from automobile dealers and has an average APR of 20% on its auto loans, and has been in business for thirty-three years. 

The company does about $1.7 billion a year in subprime auto loans and just reported its 55th straight profitable quarter. During Q1 of this year, Consumer Portfolio Services increased its quarterly originations by about 30% year-over-year, did about $450 million in subprime auto loans and lowered the delinquency rates on its portfolio. 

Lavin credits the business's performance to what he says is the company's secret sauce: machine learning. The company has been using machine learning for years to approve or deny potential borrowers within seconds. The algorithm is updated every year, and it’s what Lavin says sets Consumer Portfolio Services apart from its rivals. 

Watch the full interview here: 

Featured image from Shutterstock.

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