================================================================================
As filed with the Securities and Exchange Commission on April 10, 2006
                                                             Reg. No. 333-121913

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                ----------------

                        POST-EFFECTIVE AMENDMENT NO. 2 TO
                                    FORM S-3

             REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

                        CONSUMER PORTFOLIO SERVICES, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

               CALIFORNIA                                33-0459135
     (State or other jurisdiction of                  (I.R.S. Employer
      incorporation or organization)               Identification Number)


                                                   CHARLES BRADLEY, JR.
                                                  CHIEF EXECUTIVE OFFICER
       16355 LAGUNA CANYON ROAD                  16355 LAGUNA CANYON ROAD
       IRVINE, CALIFORNIA 92618                  IRVINE, CALIFORNIA 92618
            (949) 753-6800                            (949) 753-6800
     (Address, including zip code,           (Name, address, including zip code,
    and telephone number, including            and telephone number, including
      area code, of registrant's              area code, of agent for service)
     principal executive offices)

                                   copies to:

           PATRICK C. SARGENT                        MICHAEL J. KOLAR
           ANDREWS KURTH LLP                 OPPENHEIMER WOLFF & DONNELLY LLP
      1717 MAIN STREET, SUITE 3700          45 SOUTH SEVENTH STREET, SUITE 3300
          DALLAS, TEXAS 75201                  MINNEAPOLIS, MINNESOTA 55402
             (214) 659-4400                           (612) 607-7000

Approximate date of commencement of proposed sale to the public: On or about May
25, 2005

If the only securities being registered on this Form are being offered pursuant
to dividend or interest reinvestment plans, please check the following box. [ ]

If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [x]

If this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the following box and list
the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]

If this Form is a registration statement pursuant to General Instruction I.D. or
a post effective amendment thereto that shall become effective upon filing with
the Commission pursuant to Rule 462(e) under the Securities Act, check the
following box. [ ]

If this Form is post-effective amendment to a registration statement filed
pursuant to General Instruction I.D. filed to register additional securities or
additional classes of securities pursuant to Rule 413(b) under the Securities
Act, check the following box. [ ]


                                            CALCULATION OF REGISTRATION FEE

Title of Each Class of          Amount to be        Proposed Maximum          Proposed Maximum          Amount of
Securities to Be Registered     Registered          Offering Price Per Unit   Aggregate Offering Price  Registration Fee(2)
------------------------------  ------------------  ------------------------  ------------------------  -------------------
                                                                                            
Renewable Unsecured             $   100,000,000             (1)               $    100,000,000          $   11,770.00
Subordinated Notes


(1)  The Renewable Unsecured Subordinated Notes will be issued in denominations
     selected by the purchasers in any amount equal to or exceeding $1,000.
(2)  Previously paid to the Commission in connection with the initial filing on
     Form S-2 of this Registration Statement on January 7, 2005.



                                  $100,000,000

                        CONSUMER PORTFOLIO SERVICES, INC.

           THREE AND SIX MONTH RENEWABLE UNSECURED SUBORDINATED NOTES

ONE, TWO, THREE, FOUR, FIVE AND TEN YEAR RENEWABLE UNSECURED SUBORDINATED NOTES

                           ---------------------------

     We are offering an aggregate principal amount of up to $100,000,000 of our
renewable unsecured subordinated notes. We may offer the notes from time to time
with maturities ranging from three months to ten years. However, depending on
our capital needs, notes with certain terms may not always be available. We will
establish interest rates on the securities offered in this prospectus from time
to time in interest rate supplements to this prospectus. The notes are unsecured
obligations and your right to payment is subordinated in right of payment to
substantially all of our existing and future senior, secured, unsecured and
subordinate indebtedness. Upon maturity, your notes will be automatically
renewed for the same term as your maturing notes and at an interest rate that we
are offering at that time to other investors with similar aggregate note
portfolios for notes of the same term, unless we elect not to have your notes
renewed or unless you notify us within 15 days after the maturity date for your
notes that you want your notes repaid. If notes of the same term are not then
being offered, the interest rate upon renewal will be the rate specified by us
on or before maturity or, if no such rate is specified, the rate of the existing
note. The interest rate on your renewed note may differ from the interest rate
applicable to your note during the prior term. After giving you thirty days'
advance notice, we may redeem all or a portion of your notes for their original
principal amount plus accrued and unpaid interest. You also may request us to
repurchase your notes prior to maturity; however, unless the request is due to
your death or total permanent disability, we may, in our sole discretion,
decline your request or, if we elect to repurchase your notes, we will charge
you a penalty of up to three months' interest on notes with three month
maturities and up to six months' interest on all other notes. Our obligation to
repurchase notes for any reason is limited in any single calendar quarter to the
greater of (a) $1 million or (b) 2% of the aggregate principal amount of all
notes outstanding at the end of the previous quarter.

     The notes will be marketed and sold through Sumner Harrington Ltd., which
is acting as our selling agent for the notes. The notes will not be listed on
any securities exchange or quoted on Nasdaq or any over-the-counter market.
Sumner Harrington Ltd. does not intend to make a market in the notes and we do
not anticipate that a market in the notes will develop. There will be
significant restrictions on your ability to transfer or resell the notes. Sumner
Harrington Ltd. also will act as our servicing agent in connection with our
ongoing administrative responsibilities for the notes. We have not requested a
rating for the notes; however, third parties may independently rate them.

     THE NOTES ARE NOT CERTIFICATES OF DEPOSIT OR SIMILAR OBLIGATIONS OF, AND
ARE NOT GUARANTEED OR INSURED BY, ANY DEPOSITORY INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE SECURITIES INVESTOR PROTECTION CORPORATION OR
ANY OTHER GOVERNMENTAL OR PRIVATE FUND OR ENTITY. INVESTING IN THE NOTES
INVOLVES RISKS, WHICH ARE DESCRIBED IN "RISK FACTORS" BEGINNING ON PAGE 6 OF
THIS PROSPECTUS.

     Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.

                                                PER NOTE          TOTAL
                                                --------          -----
         Public offering price                   100.00%         100.00%
         Selling agent commissions                 3.00%           3.00%
         Proceeds to CPS, before expenses         97.00%          97.00%

     The selling agent will not receive the entire 3.0% gross commission on
notes with terms of less than three years unless the notes are successively
renewed for a total term of three years or more. See "Plan of Distribution" for
a description of additional compensation payable to the selling agent and its
affiliates in connection with services rendered in offering and selling the
notes, serving as the servicing agent and providing and managing the advertising
and marketing functions related to the sale of the notes. There will be no
underwriting discount.

     Sumner Harrington Ltd. is not required to sell any specific number or
dollar amount of notes but will use its best efforts to sell the notes offered.

     We will issue the notes in book-entry or uncertificated form. Subject to
certain limited exceptions, you will not receive a certificated security or a
negotiable instrument that evidences your notes. Sumner Harrington Ltd. will
deliver written confirmations to purchasers of the notes. Wells Fargo Bank,
National Association, Minneapolis, Minnesota, will act as trustee for the notes.

                             SUMNER HARRINGTON LTD.
                 The date of this Prospectus is April ___, 2006



                                TABLE OF CONTENTS
                                                                            PAGE
                                                                            ----

PROSPECTUS SUMMARY.............................................................1

   CPS.........................................................................1

   The Offering................................................................2

RISK FACTORS...................................................................6

   Risk Factors Relating to the Notes..........................................6

   Risk Factors Relating to CPS................................................9

FORWARD-LOOKING STATEMENTS....................................................16

RATIOS OF EARNINGS TO FIXED CHARGES...........................................17

USE OF PROCEEDS...............................................................17

CAPITALIZATION................................................................18

DESCRIPTION OF THE NOTES......................................................18

MATERIAL FEDERAL INCOME TAX CONSEQUENCES......................................29

PLAN OF DISTRIBUTION..........................................................31

INCORPORATION OF CERTAIN INFORMATION BY REFERENCE.............................32

WHERE YOU CAN FIND MORE INFORMATION...........................................33

LEGAL MATTERS.................................................................33

EXPERTS.......................................................................33

GLOSSARY......................................................................34


                                        i


                               PROSPECTUS SUMMARY

     THIS SUMMARY HIGHLIGHTS SELECTED INFORMATION FROM THIS PROSPECTUS AND MAY
NOT CONTAIN ALL THE INFORMATION THAT MAY BE IMPORTANT TO YOU. YOU SHOULD READ
THE ENTIRE PROSPECTUS AND THE OTHER INFORMATION THAT IS INCORPORATED BY
REFERENCE INTO THIS PROSPECTUS BEFORE MAKING AN INVESTMENT DECISION. CERTAIN
INDUSTRY TERMS THAT WE USE ARE DEFINED IN THE GLOSSARY, WHICH BEGINS ON PAGE 34.

                                       CPS

     We are a specialized consumer finance company engaged in purchasing,
securitizing and servicing motor vehicle retail installment contracts originated
by franchised and select independent automobile dealerships in the United
States. We focus our efforts on acquiring contracts that are secured by late
model used and, to a lesser extent, new automobiles entered into with purchasers
with sub-prime credit. Such purchasers generally have limited credit history,
lower than average income or past credit problems, and generally would not be
expected to qualify for traditional financing, such as that provided by
commercial banks or automobile manufacturers' captive finance companies.

     We started purchasing, originating and servicing motor vehicle contracts in
October 1991. Through December 31, 2005, we have purchased approximately $6.1
billion of motor vehicle contracts from dealers.

     In 2002 and 2003, we also obtained a total of approximately $530 million of
motor vehicle contracts in our acquisition by merger of MFN Financial
Corporation and its subsidiaries in March 2002 and TFC Enterprises, Inc. and its
subsidiaries in May 2003. Both of the acquired companies were engaged in
businesses similar to ours. MFN ceased to purchase motor vehicle contracts
shortly after we acquired it; TFC continues to purchase motor vehicle contracts
as our subsidiary. Additionally, in April 2004, we purchased approximately $72.3
million of motor vehicle contracts, gross of discount, then held by SeaWest
Financial Corporation and were appointed the servicer of approximately $111.8
million of motor vehicle contracts that SeaWest had previously securitized. CPS
reported a loss in the amount of $15.9 million for the year ended December 31,
2004, and a loss in the amount of $239,000 for the quarter ended March 31, 2005.
Our results of operations thereafter improved: in the quarters ended June 30,
September 30 and December 31, 2005 we recorded earnings of $545,000, $1,398,000,
and $1,698,000, respectively, resulting in earnings of $3,372,000 for the year
ended December 31, 2005.

     As of December 31, 2005, we had a total servicing portfolio, net of
unearned interest on pre-computed installment contracts, of approximately $1.1
billion, including the remaining outstanding balance of motor vehicle contracts
acquired in the TFC and MFN acquisitions, acquired in the Seawest purchase and
serviced under the SeaWest securitizations.

     We purchase motor vehicle contracts with the intention of placing them into
securitizations. Securitizations are transactions in which we sell a specified
pool of contracts to a special purpose entity of ours, which in turn issues
asset-backed securities to fund the purchase of the pool of contracts from us.
Depending on the structure of the securitization, the transaction may be
properly accounted for as a sale of the contracts or as a secured financing.
Since September 2003, we have structured our securitization transactions to be
reflected as secured financings for financial accounting purposes.

     We were incorporated in California in 1991. Our principal executive offices
are located at 16355 Laguna Canyon Road, Irvine, California 92618, and our
telephone number is (949) 753-6800.


                                       1


                                  THE OFFERING


ISSUER                           Consumer Portfolio Services, Inc.

TRUSTEE                          Wells Fargo Bank, National Association

SELLING AND SERVICING AGENT      Sumner Harrington Ltd.

PAYING AGENT                     Wells Fargo Bank, National Association

SECURITIES OFFERED               Renewable Unsecured Subordinated Notes. The
                                 notes represent our unsecured promise to repay
                                 principal at maturity and to pay interest
                                 during the term or at maturity. By purchasing a
                                 note, you are lending money to us.

METHOD OF PURCHASE               Prior to your purchase of notes, you will be
                                 required to complete a subscription agreement
                                 that will set forth the principal amount of
                                 your purchase, the term of the notes and
                                 certain other information regarding your
                                 ownership of the notes. The form of
                                 subscription agreement is filed as an exhibit
                                 to the registration statement of which this
                                 prospectus is a part. As our servicing agent,
                                 Sumner Harrington Ltd. will mail you written
                                 confirmation that your subscription has been
                                 accepted.

DENOMINATION                     You may choose the denomination of the notes
                                 you purchase in any principal amount of $1,000
                                 or more, including odd amounts.

OFFERING PRICE                   100% of the principal amount per note.

RESCISSION RIGHT                 You may rescind your investment within five
                                 business days of the postmark date of your
                                 purchase confirmation without incurring an
                                 early redemption penalty. In addition, if your
                                 subscription agreement is accepted by our
                                 servicing agent at a time when we have
                                 determined that a post-effective amendment to
                                 the registration statement of which this
                                 prospectus is a part must be filed with the
                                 Securities and Exchange Commission, but such
                                 post-effective amendment has not yet been
                                 declared effective, you will be able to rescind
                                 your investment subject to the conditions set
                                 forth in this prospectus. See "Description of
                                 the Notes -- Rescission Right" for additional
                                 information.

MATURITY                         You may generally choose maturities for your
                                 notes of 3 or 6 months or 1, 2, 3, 4, 5 or 10
                                 years; however, depending on our capital
                                 requirements, we may not sell notes of all
                                 maturities at all times.


                                       2


INTEREST RATE                    The interest rate of the notes will be
                                 established at the time you purchase them, or
                                 at the time of renewal, based upon the rates we
                                 are offering in our latest interest rate
                                 supplement to this prospectus, and will remain
                                 fixed throughout each term. We may offer higher
                                 rates of interest to investors with larger
                                 aggregate note portfolios, as set forth in the
                                 then current interest rate supplement.

INTEREST PAYMENT DATES           You may choose to receive interest payments
                                 monthly, quarterly, semiannually, annually or
                                 at maturity. If you choose to receive interest
                                 payments monthly, you may choose the day on
                                 which you will be paid. Subject to our
                                 approval, you may change the interest payment
                                 schedule or interest payment date once during
                                 each term of your notes.

PRINCIPAL PAYMENT                We will not pay principal over the term of the
                                 notes. We are obligated to pay the entire
                                 principal balance of the outstanding notes upon
                                 maturity.

PAYMENT METHOD                   Principal and interest payments will be made by
                                 direct deposit to the account you designate in
                                 your subscription documents.

RENEWAL OR REDEMPTION AT         Upon maturity, the notes will be automatically
MATURITY                         renewed for the same term at the interest rate
                                 we are offering at that time to other investors
                                 with similar aggregate note portfolios for
                                 notes of the same maturity, unless we notify
                                 you prior to the maturity date that we intend
                                 to repay the notes. You may also notify us
                                 within 15 days after the maturity date that you
                                 want your notes repaid. This 15 day period will
                                 be automatically extended if you would
                                 otherwise be required to make the repayment
                                 election at a time when we have determined that
                                 a post-effective amendment to the registration
                                 statement of which this prospectus is a part
                                 must be filed with the Securities and Exchange
                                 Commission, but such post-effective amendment
                                 has not yet been declared effective.

                                 If notes with similar terms are not being
                                 offered at the time of renewal, the interest
                                 rate upon renewal will be (a) the rate
                                 specified by us on or before the maturity date
                                 or (b) if no such rate is specified, the rate
                                 of your existing notes. The interest rate being
                                 offered upon renewal may, however, differ from
                                 the interest rate applicable to your notes
                                 during the prior term. See "Description of the
                                 Notes -- Renewal or Redemption on Maturity."

OPTIONAL REDEMPTION              After giving you 30 days' prior notice, we may
OR REPURCHASE                    redeem some or all of your notes at a price
                                 equal to their original principal amount plus
                                 accrued but unpaid interest.


                                       3


                                 You may request us to repurchase your notes
                                 prior to maturity; however, unless the request
                                 is due to your death or total permanent
                                 disability, we may, in our sole discretion,
                                 decline to repurchase your notes, and will, if
                                 we elect to repurchase your notes, charge you a
                                 penalty of up to three months of interest for
                                 notes with a three month maturity and up to six
                                 months of interest for all other notes. The
                                 total principal amount of notes that we will be
                                 required to repurchase prior to maturity, for
                                 any reason in any calendar quarter, will be
                                 limited to the greater of $1 million or 2% of
                                 the total principal amount of all notes
                                 outstanding at the end of the previous quarter.

                                 See "Description of Notes -- Redemption or
                                 Repurchase Prior To Stated Maturity."

CONSOLIDATION, MERGER OR SALE    Upon any consolidation, merger or sale of our
                                 company, we will either redeem all of the notes
                                 or our successor will be required to assume our
                                 obligations to pay principal and interest on
                                 the notes pursuant to the indenture for the
                                 notes. For a description of these provisions
                                 see "Description of the Notes - Consolidation,
                                 Merger or Sale."

RANKING; NO SECURITY             The notes:

                                 o are unsecured;

                                 o rank junior to our existing and future
                                 secured debt, including the debt of our special
                                 purpose entities;

                                 o rank junior to our existing and future senior
                                 unsecured debt, including debt we may incur
                                 under our existing and future credit
                                 facilities; and

                                 o rank junior to our existing and future
                                 subordinated debt, except for $15 million of
                                 outstanding unsecured subordinate debt and
                                 offerings of additional renewable unsecured
                                 subordinated notes, all of which will rank PARI
                                 PASSU with the notes.

                                 As of December 31, 2005, we had approximately
                                 $1,043.3 million of debt outstanding that is
                                 senior to the notes, of which approximately
                                 $1,003.1 million was issued by our consolidated
                                 special purpose entities. Including an
                                 additional approximately $103.3 million of debt
                                 that does not appear on our consolidated
                                 financial statements (which was issued by our
                                 off-balance sheet special purpose entities), we
                                 had approximately $1,146.6 million of debt
                                 outstanding that is senior to the notes. See
                                 "Capitalization."


                                       4


RESTRICTIVE COVENANTS            The indenture governing the notes contains
                                 limited restrictive covenants. These covenants:

                                 o require us to maintain a positive net worth,
                                 which includes stockholders' equity and any
                                 debt that is subordinated to the notes; and

                                 o prohibit us from paying dividends on our
                                 capital stock if there is an event of default
                                 with respect to the notes or if payment of the
                                 dividend would result in an event of default.

                                 The covenants set forth in the indenture are
                                 more fully described under "Description of
                                 Notes -- Restrictive Covenants." These
                                 covenants have significant exceptions. We do
                                 not plan to issue any debt that is subordinate
                                 to the notes.

USE OF PROCEEDS                  If all the notes are sold, with original or
                                 aggregate maturities of three years or more, we
                                 would expect to receive approximately $96.7
                                 million of net proceeds from this offering
                                 after deducting the selling agent's commissions
                                 and estimated offering expenses payable by us.
                                 As of April 3, 2006 we have received
                                 approximately $6.4 million of net proceeds from
                                 this offering, which commenced on May 25, 2005.
                                 The exact amount of net proceeds may vary
                                 considerably depending on how long the notes
                                 are offered and other factors. We intend to use
                                 the net proceeds to fund the purchase of motor
                                 vehicle contracts and for other general
                                 corporate purposes, which may include the
                                 payment of general and administrative expenses.
                                 See "Use of Proceeds."

ABSENCE OF PUBLIC MARKET AND     There is no existing market for the notes.
RESTRICTIONS ON TRANSFERS
                                 Sumner Harrington Ltd. has advised us that it
                                 does not intend to make a market in the notes
                                 after the completion of this offering and we do
                                 not anticipate that a secondary market for the
                                 notes will develop. We do not intend to apply
                                 for listing of the notes on any securities
                                 exchange or for quotation of the notes in any
                                 automated dealer quotation system, including
                                 without limitation Nasdaq or any
                                 over-the-counter market.

                                 You will be able to transfer or pledge the
                                 notes only with our prior written consent. See
                                 "Description of the Notes - Transfers."

BOOK ENTRY                       The notes will be issued in book entry or
                                 uncertificated form only. Except under limited
                                 circumstances, the notes will not be evidenced
                                 by certificated securities or negotiable
                                 instruments. See "Description of the Notes --
                                 Book Entry Registration and Transfers."


                                       5


                                  RISK FACTORS

     THE RISKS DESCRIBED BELOW SET FORTH THE MATERIAL RISKS ASSOCIATED WITH THE
PURCHASE OF NOTES AND OUR COMPANY. BEFORE YOU INVEST IN THE NOTES, YOU SHOULD
CAREFULLY CONSIDER THESE RISK FACTORS, AS WELL AS THE OTHER INFORMATION
REGARDING THE NOTES AND THE COMPANY CONTAINED IN THIS PROSPECTUS AND IN THE
DOCUMENTS INCORPORATED BY REFERENCE INTO THIS PROSPECTUS.

                       RISK FACTORS RELATING TO THE NOTES

BECAUSE OF THEIR CHARACTERISTICS, THE NOTES MAY NOT BE A SUITABLE INVESTMENT FOR
YOU.

     The notes may not be a suitable investment for you, and we advise you to
consult your investment, tax and other professional financial advisors prior to
purchasing notes. The characteristics of the notes, including maturity, interest
rate and lack of liquidity, may not satisfy your investment objectives. The
notes may not be a suitable investment for you based on your ability to
withstand a loss of interest or principal or other aspects of your financial
situation, including your income, net worth, financial needs, investment risk
profile, return objectives, investment experience and other factors. Prior to
purchasing any notes, you should consider your investment allocation with
respect to the amount of your contemplated investment in the notes in relation
to your other investment holdings and the diversity of those holdings.

BECAUSE THE NOTES RANK JUNIOR TO SUBSTANTIALLY ALL OF OUR EXISTING AND FUTURE
DEBT AND OTHER FINANCIAL OBLIGATIONS, YOUR NOTES WILL LACK PRIORITY IN PAYMENT.

     Your right to receive payments on the notes is junior to substantially all
of our existing indebtedness and future borrowings (including debt of our
special purpose entities). Your notes will be subordinated to the prior payment
in full of all of our other debt obligations. As of December 31, 2005, we had
approximately $1,043.3 million of debt outstanding, including indebtedness held
by our special purpose entities, which will rank senior to your notes. Including
an additional approximately $103.3 million of indebtedness issued by our
off-balance sheet special purpose entities, we had approximately $1,146.6
million of debt outstanding that is senior to your notes. We may also incur
substantial additional indebtedness in the future that would also rank senior to
your notes. Because of the subordination provisions of the notes, in the event
of our bankruptcy, liquidation or dissolution, our assets would be available to
make payments to you under the notes only after all payments had been made on
all of our secured and unsecured indebtedness and other obligations that are
senior to the notes. Sufficient assets may not remain after all such senior
payments have been made to make any payments to you under the notes, including
payments of interest when due or principal upon maturity.

BECAUSE THERE WILL BE NO TRADING MARKET FOR THE NOTES AND BECAUSE TRANSFERS OF
THE NOTES REQUIRE OUR CONSENT, IT MAY BE DIFFICULT TO SELL YOUR NOTES.

     Your ability to liquidate your investment is limited because of transfer
restrictions, the lack of a trading market and the limitation on repurchase
requests prior to maturity. Your notes may not be transferred without our prior
written consent. In addition, there will be no trading market for the notes. Due
to the restrictions on transfer of the notes and the lack of a market for the
sale of the notes, even if we permitted a transfer, you might be unable to sell,
pledge or otherwise liquidate your investment. Except in the case of death or
total permanent disability, repurchases of the notes prior to maturity are
subject to our approval and to repurchase penalties of up to three months
interest on notes with three month maturities and up to six months interest on
notes with maturities of six months or longer. The total principal amount of
notes that we would be required to repurchase in any calendar quarter, for any
reason, will be limited to the greater of $1 million or 2% of the aggregate
principal amount of all notes outstanding at the end of the previous quarter.
See "Description of the Notes."

BECAUSE THE NOTES WILL HAVE NO SINKING FUND, SECURITY, INSURANCE OR GUARANTEE,
YOU MAY LOSE ALL OR A PART OF YOUR INVESTMENT IN THE NOTES IF WE DO NOT HAVE
ENOUGH CASH TO PAY THE NOTES.

     There is no sinking fund, security, insurance or guarantee of our
obligation to make payments on the notes. The notes are not secured by any of
our assets. We will not contribute funds to a separate account, commonly known
as a sinking fund, to make interest or principal payments on the notes. The
notes are not certificates of deposit or similar obligations of, and are not
guaranteed or insured by, any depository institution, the Federal Deposit
Insurance Corporation, the Securities Investor Protection Corporation, or any
other governmental or private fund or entity. Therefore, if you invest in the
notes, you will have to rely only on our cash flow from operations and other
sources of funds for repayment of principal at maturity or redemption and for
payment of interest when due. If our cash flow from operations and other sources
of funds are not sufficient to pay the notes, then you may lose all or part of
your investment.


                                       6


THE NOTES WILL AUTOMATICALLY RENEW UNLESS YOU REQUEST REPAYMENT.

     Upon maturity, the notes will be automatically renewed for the same term as
your maturing note and at an interest rate that we are offering at that time to
other investors with similar aggregate note portfolios for notes of the same
term, unless we notify you prior to the maturity date that we intend to repay
the notes or you notify us within 15 days after the maturity date that you want
your notes repaid. This 15 day period will be automatically extended if you
would otherwise be required to make the repayment election at a time when we
have determined that a post-effective amendment to the registration statement of
which this prospectus is a part must be filed with the Securities and Exchange
Commission, but such post-effective amendment has not yet been declared
effective. If notes with the same term are not then being offered, the interest
rate upon renewal will be the rate specified by us on or before the maturity
date, or the rate of the existing note if no such rate is specified. The
interest rate on your renewed note may be lower than the interest rate of your
original note. Any requests for repurchases after your notes are renewed will be
subject to our approval, which we may generally withhold or deny for any reason,
and to repurchase penalties and the limitations on the amount of notes we would
be willing to repurchase in any calendar quarter.

BECAUSE WE HAVE SUBSTANTIAL INDEBTEDNESS THAT IS SENIOR TO THE NOTES, OUR
ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     We have now and, after we sell these notes, will continue to have a
substantial amount of indebtedness. At December 31, 2005, we had approximately
$1.2 billion of debt outstanding, comprising (in thousands):

Warehouse lines of credit (1)                           35,350
Notes payable                                              211
Residual interest financing                             43,745
Securitization trust debt (1)                          924,026
Senior secured debt                                     40,000
Subordinated debt                                       18,655
Total on balance sheet debt                          1,061,987
                                                    ----------
Off-balance sheet securitization
trust debt (1)(2)                                                   103,290
                                                                  ---------
Total on and off-balance sheet debt                               1,165,277
                                                                  ---------
----------------
(1) Debt obligations of our special purpose entities
(2) Debt obligations of our special purpose entities where the securitization
transactions were structured as sales for accounting purposes

     Our debt to net worth ratio at December 31, 2005 was 14.4 (including all
debt issued by off-balance sheet special purpose entities our debt to net worth
ratio was 15.8 and excluding all securitization trust debt, our debt to net
worth ratio was 1.9), and our ratio of earnings to fixed charges, including
interest expense on the above-mentioned debt, was 1.06.

     Our substantial indebtedness could adversely affect our financial condition
and prevent us from fulfilling our obligations under the notes by, among other
things:

     o    increasing our vulnerability to general adverse economic and industry
          conditions;

     o    requiring us to dedicate a substantial portion of our cash flow from
          operations to payments on our indebtedness, thereby reducing amounts
          available for working capital, capital expenditures and other general
          corporate purposes;

     o    limiting our flexibility in planning for, or reacting to, changes in
          our business and the industry in which we operate;


                                       7


     o    placing us at a competitive disadvantage compared to our competitors
          that have less debt; and

     o    limiting our ability to borrow additional funds.

     Although we believe we will generate sufficient free cash flow to service
this debt and our obligations under the notes, there is no assurance that we
will be able to do so. If we do not generate sufficient operating profits, our
ability to make required payments on our senior debt, as well as on the debt
represented by the notes described in this prospectus, may be impaired.

IF WE INCUR SUBSTANTIALLY MORE INDEBTEDNESS THAT IS SENIOR TO YOUR NOTES, OUR
ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     Subject to limitations contained in our credit facility and in the
indenture, we may incur substantial additional indebtedness in the future. While
the indenture for the notes requires us to maintain a positive net worth, it
does not prohibit us from incurring additional indebtedness. Any such borrowings
would be senior to the notes. If we borrow more money, the risks to noteholders
described in this prospectus could intensify.

OUR MANAGEMENT HAS BROAD DISCRETION OVER THE USE OF PROCEEDS FROM THE OFFERING.

     We expect to use the proceeds from the offering to fund the purchase of
motor vehicle contracts and for other general corporate purposes, which may
include the payment of general and administrative expenses. Because no specific
allocation of the proceeds is required in the indenture, our management will
have broad discretion in determining how the proceeds of the offering will be
used. See "Use of Proceeds."

BECAUSE WE ARE SUBJECT TO MANY RESTRICTIONS IN OUR EXISTING CREDIT FACILITIES,
OUR ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     The terms of our existing credit facilities and our securitization trust
debt impose significant operating and financial restrictions on us and our
subsidiaries and require us to meet certain financial tests. The indenture for
the notes also imposes certain limited restrictions on our ability and that of
our subsidiaries to take certain actions. Such terms and restrictions may be
amended or supplemented from time to time without requiring any notice to or
consent of the holders of the notes or the trustee. These restrictions may have
an adverse impact on our business activities, results of operations and
financial condition. These restrictions may also significantly limit or prohibit
us from engaging in certain transactions, including the following:

     o    incurring or guaranteeing additional indebtedness;

     o    making capital expenditures in excess of agreed upon amounts;

     o    paying dividends or other distributions to our stockholders or
          redeeming, repurchasing or retiring our capital stock or subordinated
          obligations;

     o    making investments;

     o    creating or permitting liens on our assets or the assets of our
          subsidiaries;

     o    issuing or selling capital stock of our subsidiaries;

     o    transferring or selling our assets;

     o    engaging in mergers or consolidations;

     o    permitting a change of control of our company;

     o    liquidating, winding up or dissolving our company;

     o    changing our name or the nature of our business, or the names or
          nature of the business of our subsidiaries; and

     o    engaging in transactions with our affiliates outside the normal course
          of business.

     These restrictions may limit our ability to obtain additional sources of
capital, which may limit our ability to repay the notes. In addition, the
failure to comply with any of the covenants of our existing credit facilities or
the indenture or to maintain certain indebtedness ratios would cause a default
under one or more of our credit facilities and may cause a default under the
indenture or our other debt agreements that may be outstanding from time to


                                       8


time. A default, if not waived, could result in acceleration of the related
indebtedness, in which case such debt would become immediately due and payable.
A continuing default or acceleration of one or more of our credit facilities,
the indenture or any other debt agreement, will likely cause a default under the
indenture and other debt agreements that otherwise would not be in default, in
which case all such related indebtedness could be accelerated. If this occurs,
we may not be able to repay our debt or borrow sufficient funds to refinance our
indebtedness. Even if any new financing is available, it may not be on terms
that are acceptable to us or it may not be sufficient to refinance all of our
indebtedness as it becomes due. Complying with these covenants may cause us to
take actions that are not favorable to holders of the notes. See "Description of
the Notes - Restrictive Covenants."

BECAUSE THERE ARE LIMITED RESTRICTIONS ON OUR ACTIVITIES UNDER THE INDENTURE,
YOU WILL HAVE ONLY LIMITED PROTECTIONS UNDER THE INDENTURE.

     In comparison to the restrictive covenants that are imposed on us by our
existing credit facilities and other borrowing arrangements, the indenture
governing the notes contains relatively minimal restrictions on our activities.
In addition, the indenture contains only limited events of default other than
our failure to timely pay principal and interest on the notes. Because there are
only very limited restrictions and limited events of default under the
indenture, we will not be restricted from issuing additional debt senior to your
notes or be required to maintain any ratios of assets to debt in order to
increase the likelihood of timely payments to you under the notes. Further, if
we default in the payment of the notes or otherwise under the indenture, you
will likely have to rely on the trustee to exercise your remedies on your
behalf. You may not be able to seek remedies against us directly. See
"Description of the Notes - Events of Default."

BECAUSE WE MAY REDEEM THE NOTES AT ANY TIME PRIOR TO THEIR MATURITY, YOU MAY BE
SUBJECT TO REINVESTMENT RISK.

     We have the right to redeem any note at any time prior to its stated
maturity upon 30 days written notice to you. The notes would be redeemed at 100%
of the principal amount plus accrued but unpaid interest up to but not including
the redemption date. Any such redemption may have the effect of reducing the
income or return on investment that any investor may receive on an investment in
the notes by reducing the term of the investment. If this occurs, you may not be
able to reinvest the proceeds at an interest rate comparable to the rate paid on
the notes. See "Description of the Notes - Redemption or Repurchase Prior To
Stated Maturity."

BECAUSE WE MAY TERMINATE THE DISTRIBUTION AND MANAGEMENT AGREEMENT UPON PRIOR
NOTICE TO SUMNER HARRINGTON LTD., YOU SHOULD NOT RELY ON SUMNER HARRINGTON LTD.
TO MARKET, SELL AND ADMINISTER THE NOTES.

     The distribution and management agreement between us and Sumner Harrington
Ltd. may be terminated by us upon prior notice. Therefore, it is not certain
Sumner Harrington Ltd. will be responsible for the marketing, sale and
administration of the notes for the duration of this offering. Other parties,
including our company, may take over the functions currently provided by Sumner
Harrington Ltd. Therefore, you should not rely on Sumner Harrington Ltd.
continuously being responsible for the marketing, sale and administration of the
notes.

UNDER CERTAIN CIRCUMSTANCES, YOU MAY BE REQUIRED TO PAY TAXES ON ACCRUED
INTEREST ON THE NOTES PRIOR TO RECEIVING A SUFFICIENT AMOUNT OF CASH INTEREST
PAYMENTS.

     If you choose to have interest on your note paid at maturity and the term
of your note exceeds one year, you may be required to pay taxes on the accrued
interest prior to our making any interest payments to you. You should consult
your tax advisor to determine your tax obligations.


                          RISK FACTORS RELATING TO CPS

BECAUSE WE REQUIRE A SUBSTANTIAL AMOUNT OF CASH TO SERVICE OUR DEBT, WE MAY NOT
BE ABLE TO PAY THE NOTES.

     To service our indebtedness, we require a significant amount of cash. Our
ability to generate cash depends on many factors, including our successful
financial and operating performance. We cannot assure you that our business
strategy will succeed or that we will achieve our anticipated financial results.
Our financial and operational performance depends upon a number of factors, many
of which are beyond our control. These factors include, without limitation:


                                       9


     o    the current economic and competitive conditions in the asset-backed
          securities market;

     o    the current credit quality of our motor vehicle contracts;

     o    the performance of our residual interests;

     o    any operating difficulties or pricing pressures we may experience;

     o    our ability to obtain credit enhancement;

     o    our ability to establish and maintain dealer relationships;

     o    the passage of laws or regulations that affect us adversely;

     o    any delays in implementing any strategic projects we may have;

     o    our ability to compete with our competitors; and

     o    our ability to acquire motor vehicle contracts.

     Depending upon the outcome of one or more of these factors, we may not be
able to generate sufficient cash flow from operations or to obtain sufficient
funding to satisfy all of our obligations, including our obligations under the
notes. If we are unable to pay our debts, we will be required to pursue one or
more alternative strategies, such as selling assets, refinancing or
restructuring our indebtedness or selling additional equity capital. These
alternative strategies may not be feasible at the time, may prove inadequate or
could require the prior consent of our senior secured and unsecured lenders.

BECAUSE WE NEED SUBSTANTIAL LIQUIDITY TO OPERATE OUR BUSINESS, WE MAY NOT BE
ABLE TO PAY THE NOTES.

     We have historically funded our operations principally through internally
generated cash flows, sales of debt and equity securities, including through
securitizations and warehouse credit facilities, borrowings from a private
equity fund and sales of subordinated notes. However, we may not be able to
obtain sufficient funding for our operations through either or a combination of
(1) future access to the capital markets for equity or debt issuances, including
securitizations or (2) future borrowings or other financings on acceptable terms
to us.

     If we are unable to access the capital markets or obtain acceptable
financing, our results of operations, financial condition and cash flows would
be materially and adversely affected and we may be unable to make payments on
the notes. We require a substantial amount of cash liquidity to operate our
business. Among other things, we use such cash liquidity to:

     o    acquire motor vehicle contracts;

     o    fund overcollateralization in warehouse facilities and
          securitizations;

     o    pay securitization fees and expenses;

     o    fund spread accounts in connection with securitizations;

     o    satisfy working capital requirements and pay operating expenses; and

     o    pay interest expense.

     Prior to the third quarter of 2003, when we securitized our motor vehicle
contracts, we reported a gain on the sale of those contracts. This gain
represented a substantial portion of our revenues prior to the third quarter of
2003. However, although we reported this gain at the time of sale, we received
the monthly cash payments on those contracts (representing revenue previously
recognized) over the life of the motor vehicle contracts, rather than at the
time of sale. As a result, a substantial portion of our reported revenues prior
to the third quarter of 2003 did not represent immediate cash liquidity.


                                       10


OUR ABILITY TO PAY THE NOTES WILL DEPEND ON OUR ABILITY TO SECURE AND MAINTAIN
CREDIT AND WAREHOUSE FINANCING ON FAVORABLE TERMS.

     We depend on credit and warehouse facilities to finance our purchases of
motor vehicle contracts. Our business strategy requires that these credit and
warehouse financing sources continue to be available to us from the time of
purchase or origination of a motor vehicle contract until its sale through a
securitization.

     Our primary source of day-to-day liquidity is our warehouse lines of
credit, in which we sell or pledge motor vehicle contracts, as often as once a
week, to special-purpose affiliated entities where they are "warehoused" until
they are securitized. We depend substantially on two warehouse lines of credit:
(i) a $150 million warehouse line of credit with Bear, Stearns & Co., Inc.,
which was entered into in November 2005 and, unless earlier terminated upon the
occurrence of certain events, will expire in November 2006, and (ii) a $200
million warehouse line of credit with UBS Real Estate Securities Inc., which was
executed in June 2004 and, unless earlier terminated upon the occurrence of
certain events, will expire in June 2007. These warehouse facilities will remain
available to us only if, among other things, we comply with certain financial
covenants contained in the documents governing these facilities. These warehouse
facilities may not be available to us in the future and we may not be able to
obtain other credit facilities on favorable terms to fund our operations.

     If we are unable to arrange new warehousing or credit facilities or extend
our existing warehouse or credit facilities when they come due, our results of
operations, financial condition and cash flows could be materially and adversely
affected and we may be unable to make payments on the notes.

OUR ABILITY TO PAY THE NOTES WILL DEPEND ON OUR ABILITY TO SECURITIZE OUR
PORTFOLIO OF MOTOR VEHICLE CONTRACTS.

     We are dependent upon our ability to continue to finance pools of motor
vehicle contracts in term securitizations in order to generate cash proceeds for
new purchases of motor vehicle contracts. We have historically depended on
securitizations of motor vehicle contracts to provide permanent financing of
those contracts. By "permanent financing" we mean financing that extends to
cover the full term of the contracts. By contrast, our warehouse credit
facilities permit us to borrow against the value of such receivables only for
limited times. There can be no assurance that any securitization transaction
will be available on terms acceptable to us, or at all. The timing of any
securitization transaction is affected by a number of factors beyond our
control, any of which could cause substantial delays, including, without
limitation,

     o    market conditions;

     o    the approval by all parties of the terms of the securitization;

     o    the availability of credit enhancement on acceptable terms; and

     o    our ability to acquire a sufficient number of motor vehicle contracts
          for securitization.

     Adverse changes in the market for securitized contract pools may result in
our inability to securitize contracts and may result in a substantial extension
of the period during which our contracts are financed through our warehouse
facilities, which would burden our financing capabilities, could require us to
curtail our purchase of contracts, and could have a material adverse effect on
us and our ability to make payments on the notes.

OUR ABILITY TO PAY THE NOTES WILL DEPEND ON CASH FLOWS FROM OUR RESIDUAL
INTERESTS IN OUR SECURITIZATION PROGRAM AND OUR WAREHOUSE CREDIT FACILITIES.

     When we sell or pledge our motor vehicle contracts in securitizations and
warehouse credit facilities, we receive cash and a residual interest in the
securitized assets. This residual interest represents the right to receive the
future cash flows to be generated by the motor vehicle contracts in excess of
(i) the interest and principal paid to investors on the indebtedness issued in
connection with the financing (ii) the costs of servicing the contracts and
(iii) certain other costs incurred in connection with completing and maintaining
the securitization or warehousing. We sometimes refer to these future cash flows
as "excess spread cash flows."

     Under the financial structures we have used to date in our securitizations
and warehouse credit facilities, excess spread cash flows that would otherwise
be paid to the holder of the residual interest are used to increase
overcollateralization or are retained in a spread account within the
securitization trusts or the warehouse facility to provide liquidity and credit
enhancement for the related securities.


                                       11


     While the specific terms and mechanics of each spread account vary among
transactions, our securitization and warehousing agreements generally provide
that we will receive excess spread cash flows only if the amount of
overcollateralization and spread account balances have reached specified levels
and/or the delinquency, defaults or net losses related to the contracts in the
motor vehicle contract pools are below certain predetermined levels. In the
event delinquencies, defaults or net losses on contracts exceed these levels,
the terms of the securitization or warehouse facility:

     o    may require increased credit enhancement, including an increase in the
          amount required to be on deposit in the spread account, to be
          accumulated for the particular pool;

     o    may restrict the distribution to us of excess spread cash flows
          associated with other securitized or warehoused pools; and

     o    in certain circumstances, may permit affected parties to require the
          transfer of servicing on some or all of the securitized or warehoused
          contracts to another servicer.

     We typically retain or sell residual interests or use them as collateral to
borrow cash. In any case, the future excess spread cash flow received in respect
of the residual interests are integral to the financing of our operations. The
amount of cash received from residual interests depends in large part on how
well our portfolio of securitized and warehoused motor vehicle contracts
performs. If our portfolio of warehoused and securitized motor vehicle contracts
has higher delinquency and loss ratios than expected, then the amount of money
realized from our retained residual interests, or the amount of money we could
obtain from the sale or other financing of our residual interests, would be
reduced, which could have an adverse effect on our operations, financial
condition and cash flows and our ability to make payments on the notes.

IF WE ARE UNABLE TO OBTAIN CREDIT ENHANCEMENT FOR OUR SECURITIZATION PROGRAM OR
OUR WAREHOUSE CREDIT FACILITIES UPON FAVORABLE TERMS, OUR ABILITY TO PAY THE
NOTES MAY BE IMPAIRED.

     In our securitizations, we typically utilize credit enhancement in the form
of one or more financial guaranty insurance policies issued by a financial
guaranty insurance company. Each of these policies unconditionally and
irrevocably guarantees certain interest and principal payments on the securities
issued in our securitizations. These guarantees enable these securities to
achieve the highest credit rating available. This form of credit enhancement
reduces the costs of our securitizations relative to alternative forms of credit
enhancements currently available to us. None of the financial guarantee
insurance companies is required to insure future securitizations. As we pursue
future securitizations, we may not be able to obtain:

     o    credit enhancement in any form from a financial guaranty insurance
          company or any other provider of credit enhancement on acceptable
          terms; or

     o    similar ratings for future securitizations.

     If we were unable to obtain such enhancements or ratings, we would expect
to incur increased costs of funds, which could have a material adverse effect on
our results of operations, financial condition and cash flows and our ability to
make interest payments on, or repay, the notes.

IF OUR PORTFOLIO OF MOTOR VEHICLE CONTRACTS EXPERIENCES HIGHER LEVELS OF
DEFAULTS, DELINQUENCIES OR LOSSES THAN WE ANTICIPATE, OUR ABILITY TO PAY THE
NOTES MAY BE IMPAIRED.

     We specialize in the purchase, sale and servicing of contracts to finance
automobile purchases by customers with impaired or limited credit histories or
"sub-prime" customers, which entail a higher risk of non-performance, higher
delinquencies and higher losses than contracts with more creditworthy customers.
While we believe that the underwriting criteria and collection methods we employ
enable us to control the higher risks inherent in contracts with sub-prime
customers, no assurance can be given that such criteria and methods will afford
adequate protection against such risks. We have in the past experienced
fluctuations in the delinquency and charge-off performance of our contracts. In
the event that portfolios of contracts securitized and serviced by us experience
greater defaults, higher delinquencies or higher net losses than anticipated,
our income could be negatively affected and our ability to make payments on the
notes could be impaired. A larger number of defaults than anticipated could also
result in adverse changes in the structure of future securitization
transactions, such as a requirement of increased cash collateral or other credit
enhancement in such transactions.


                                       12


IF THE ECONOMY OF ALL OR CERTAIN REGIONS OF THE UNITED STATES SLOWS OR ENTERS
INTO A RECESSION, OUR ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     Our business is directly related to sales of new and used automobiles,
which are sensitive to employment rates, prevailing interest rates and other
domestic economic conditions. Delinquencies, repossessions and losses generally
increase during economic slowdowns or recessions. Because of our focus on
"sub-prime" customers, the actual rates of delinquencies, repossessions and
losses on our motor vehicle contracts could be higher under adverse economic
conditions than those experienced in the automobile finance industry in general,
particularly in the states of Texas, California, Florida, Louisiana and
Pennsylvania, states in which our motor vehicle contracts are geographically
concentrated. Any sustained period of economic slowdown or recession could
adversely affect our ability to sell or securitize pools of contracts. The
timing of any economic changes is uncertain, and weakness in the economy could
have an adverse effect on our business and that of the dealers from which we
purchase contracts and result in reductions in our revenues or the cash flows
available to us, and, therefore, could have an adverse effect on our ability to
make payments on the notes.

IF AN INCREASE IN INTEREST RATES RESULTS IN A DECREASE IN OUR CASH FLOW FROM
EXCESS SPREAD, OUR ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     Our profitability is largely determined by the difference, or "spread,"
between the effective interest rate received by us on the motor vehicle
contracts which we acquire and the interest rates payable under our warehouse
credit facilities during the warehousing period and on the securities issued in
our securitizations.

     Several factors affect our ability to manage interest rate risk.
Specifically, we are subject to interest rate risk during the period between
when motor vehicle contracts are purchased from dealers and when such contracts
are sold and financed in a securitization. Interest rates on our warehouse
credit facilities are adjustable while the interest rates on the contracts are
fixed. Therefore, if interest rates increase, the interest we must pay to the
lenders under our warehouse credit facilities is likely to increase while the
interest realized by us under those warehoused contracts remains the same, and
thus, during the warehousing period, the excess spread cash flow received by us
would likely decrease. Additionally, contracts warehoused and then securitized
during a rising interest rate environment may result in less excess spread cash
flow realized by us under those securitizations as, historically, our
securitization facilities pay interest to securityholders on a fixed rate basis
set at prevailing interest rates at the time of the closing of the
securitization, which may be several months after the contracts securitized were
originated and entered the warehouse, while our customers pay fixed rates of
interest on the contracts. A decrease in excess spread cash flow could adversely
affect our earnings and cash flow and our ability to make payments on the notes.

     To mitigate, but not eliminate, the short-term risk relating to interest
rates payable by us under the warehouse facilities, we generally hold motor
vehicle contracts in the warehouse facilities for less than four months. To
mitigate, but not eliminate, the long-term risk relating to interest rates
payable by us in securitizations, we have in the past, and intend to continue
to, structure some of our securitization transactions to include pre-funding
structures, whereby the amount of securities issued exceeds the amount of
contracts initially sold into the securitization. In pre-funding, the proceeds
from the pre-funded portion are held in an escrow account until we sell the
additional contracts into the securitization in amounts up to the balance of the
pre-funded escrow account. In pre-funded securitizations, we effectively lock in
our borrowing costs with respect to the contracts we subsequently sell into the
securitization. However, we incur an expense in pre-funded securitizations equal
to the difference between the money market yields earned on the proceeds held in
escrow prior to subsequent delivery of contracts and the interest rate paid on
the securities outstanding, the amount as to which there can be no assurance.
Despite these mitigation strategies, an increase in prevailing interest rates
would cause us to receive less excess spread cash flows on motor vehicle
contracts, and thus could adversely affect our earnings and cash flows and our
ability to make payments on the notes.

IF WE ARE UNABLE TO SUCCESSFULLY COMPETE WITH OUR COMPETITORS, OUR ABILITY TO
PAY THE NOTES MAY BE IMPAIRED.

     The automobile financing business is highly competitive. We compete with a
number of national, local and regional finance companies. In addition,
competitors or potential competitors include other types of financial services
companies, such as commercial banks, savings and loan associations, leasing
companies, credit unions providing retail loan financing and lease financing for
new and used vehicles and captive finance companies affiliated with major
automobile manufacturers such as General Motors Acceptance Corporation and Ford
Motor Credit Corporation. Many of our competitors and potential competitors
possess substantially greater financial, marketing, technical, personnel and
other resources than we do, including greater access to capital markets for
unsecured commercial paper and investment grade rated debt instruments, and to


                                       13


other funding sources which may be unavailable to us. Moreover, our future
profitability will be directly related to the availability and cost of our
capital relative to that of our competitors. Many of these companies also have
long-standing relationships with automobile dealers and may provide other
financing to dealers, including floor plan financing for the dealers' purchases
of automobiles from manufacturers, which we do not offer. There can be no
assurance that we will be able to continue to compete successfully and, as a
result, we may not be able to purchase contracts from dealers at a price
acceptable to us, which could result in reductions in our revenues or the cash
flows available to us, and, therefore, could have an adverse effect on our
ability to make payments on the notes.

IF OUR DEALERS DO NOT SUBMIT A SUFFICIENT NUMBER OF SUITABLE MOTOR VEHICLE
CONTRACTS TO US FOR PURCHASE, OUR ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     We are dependent upon establishing and maintaining relationships with a
large number of unaffiliated automobile dealers to supply us with motor vehicle
contracts. During the year ended December 31, 2005, no dealer accounted for more
than 1.0% of the contracts we purchased. The agreements we have with dealers to
purchase contracts do not require dealers to submit a minimum number of
contracts for purchase. The failure of dealers to submit contracts that meet our
underwriting criteria could result in reductions in our revenues or the cash
flows available to us, and, therefore, could have an adverse effect on our
ability to make payments on the notes.

IF A SIGNIFICANT NUMBER OF OUR MOTOR VEHICLE CONTRACTS PREPAY OR EXPERIENCE
DEFAULTS, OUR ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     If motor vehicle contracts that we purchase or service are prepaid or
experience defaults, this could materially and adversely affect our results of
operations, financial condition and cash flows and our ability to make payments
on the notes. Our results of operations, financial condition, cash flows and
liquidity, and consequently our ability to make payments on the notes, depend,
to a material extent, on the performance of motor vehicle contracts which we
purchase, warehouse and securitize. A portion of the motor vehicle contracts
acquired by us will default or prepay. In the event of payment default, the
collateral value of the motor vehicle securing a motor vehicle contract will
most likely not cover the outstanding principal balance on that contract and the
related costs of recovery. We maintain an allowance for credit losses on motor
vehicle contracts held on our balance sheet, which reflects our estimates of
probable credit losses which can be reasonably estimated for on-balance sheet
securitizations and warehoused contracts. If the allowance is inadequate, then
we would recognize the losses in excess of the allowance as an expense and our
results of operations could be adversely affected. In addition, under the terms
of our warehouse facilities with UBS and Bear Stearns, we are not able to borrow
against defaulted motor vehicle contracts.

     Our servicing income can also be adversely affected by prepayment of, or
defaults under, motor vehicle contracts in our servicing portfolio. Our
contractual servicing revenue is based on a percentage of the outstanding
principal balance of the motor vehicle contracts in our servicing portfolio. If
motor vehicle contracts are prepaid or charged off, then our servicing revenue
will decline while our servicing costs may not decline proportionately.

     The value of our residual interest in the securitized assets in each
off-balance sheet securitization reflects our estimate of expected future credit
losses and prepayments for the motor vehicle contracts included in that
securitization. If actual rates of credit loss or prepayments, or both, on such
motor vehicle contracts exceed our estimates, the value of our residual interest
and the related cash flow would be impaired. We periodically review our credit
loss and prepayment assumptions relative to the performance of the securitized
motor vehicle contracts and to market conditions. Our results of operations and
liquidity could be adversely affected if actual credit loss or prepayment levels
on securitized motor vehicle contracts substantially exceed anticipated levels.
Under certain circumstances, we could be required to record an impairment charge
through a reduction to interest income.

THE EFFECTS OF TERRORISM AND MILITARY ACTION MAY IMPAIR OUR ABILITY TO PAY THE
NOTES.

     The long-term economic impact of the events of September 11, 2001, possible
future attacks or other incidents and related military action, or current or
future military action by United States forces in Iraq and other regions, could
have a material adverse effect on general economic conditions, consumer
confidence, and market liquidity. No assurance can be given as to the effect of
these events on the performance of the motor vehicle contracts. Any adverse
impact resulting from these events could materially affect our results of
operations, financial condition and cash flows. In addition, activation of a
substantial number of U.S. military reservists or members of the National Guard
may significantly increase the proportion of contracts whose interest rates are
reduced by the application of the Servicemembers' Civil Relief Act, which
provides, generally, that an obligor who is covered by the relief act may not be
charged interest on the related contract in excess of 6% annually during the
period of the obligor's active duty.


                                       14


IF WE LOSE SERVICING RIGHTS ON OUR PORTFOLIO OF MOTOR VEHICLE CONTRACTS, OUR
ABILITY TO PAY THE NOTES WILL BE IMPAIRED.

     The loss of our servicing rights could materially and adversely affect our
results of operations, financial condition and cash flows and our ability to
make payments on the notes. Our results of operations, financial condition and
cash flows, and our ability to make interest payments on, or repay, the notes,
would be materially and adversely affected if any of the following were to
occur:

     o    the loss of our servicing rights under the sale and servicing
          agreements for our warehouse facilities with Bear Stearns and UBS;

     o    the loss of our servicing rights under the applicable sale and
          servicing agreement relating to motor vehicle contracts which we have
          sold in our securitizations or service on behalf of third parties,
          including servicing rights acquired from Seawest; or

     o    the occurrence of certain trigger events under our insurance
          agreements with financial guaranty insurance companies or with any
          other credit enhancer in each of our securitizations that would block
          the release of excess spread cash flows or cash releases from the
          spread accounts in those securitizations.

     We are entitled to receive servicing fees only while we act as servicer
under the applicable sale and servicing agreement for motor vehicle contracts
entered into in connection with our warehouse facilities and securitizations and
the agreements under which we service motor vehicle contracts in connection with
the Seawest securitizations. Under our warehouse facilities and securitizations
and the Seawest securitizations, we may be terminated as servicer upon the
occurrence of certain events, including:

     o    our failure generally to observe and perform covenants and agreements
          applicable to us;

     o    certain bankruptcy events involving us; or

     o    the occurrence of certain events of default under the documents
          governing the facilities.

IF WE LOSE KEY PERSONNEL, OUR ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     Our future operating results depend in significant part upon the continued
service of our key senior management personnel, none of whom is bound by an
employment agreement. Our future operating results also depend in part upon our
ability to attract and retain qualified management, technical, sales and support
personnel for our operations. Competition for such personnel is intense. We
cannot assure you that we will be successful in attracting or retaining such
personnel. The loss of any key employee, the failure of any key employee to
perform in his or her current position or our inability to attract and retain
skilled employees, as needed, could materially and adversely affect our results
of operations, financial condition and cash flows.

IF WE FAIL TO COMPLY WITH REGULATIONS, OUR ABILITY TO PAY THE NOTES MAY BE
IMPAIRED.

     Failure to materially comply with all laws and regulations applicable to us
could materially and adversely affect our ability to operate our business and
our ability to make payments on the notes. Our business is subject to numerous
federal and state consumer protection laws and regulations, which, among other
things:

     o    require us to obtain and maintain certain licenses and qualifications;

     o    limit the interest rates, fees and other charges we are allowed to
          charge;

     o    limit or prescribe certain other terms of our motor vehicle contracts;

     o    require specific disclosures;

     o    define our rights to repossess and sell collateral; and

     o    maintain safeguards designed to protect the security and
          confidentiality of customer information.


                                       15


     We believe that we are in compliance in all material respects with all such
laws and regulations, and that such laws and regulations have had no material
adverse effect on our ability to operate our business. However, we may be
materially and adversely affected if we fail to comply with:

     o    applicable laws and regulations;

     o    changes in existing laws or regulations;

     o    changes in the interpretation of existing laws or regulations; or

     o    any additional laws or regulations that may be enacted in the future.

IF WE EXPERIENCE UNFAVORABLE LITIGATION RESULTS, OUR ABILITY TO PAY THE NOTES
MAY BE IMPAIRED.

     Unfavorable outcomes in any of our current or future litigation proceedings
could materially and adversely affect our results of operations, financial
conditions and cash flows and our ability to make payments on the notes. As a
consumer finance company, we are subject to various consumer claims and
litigation seeking damages and statutory penalties based upon, among other
things, disclosure inaccuracies and wrongful repossession, which could take the
form of a plaintiff's class action complaint. We, as the assignee of finance
contracts originated by dealers, may also be named as a co-defendant in lawsuits
filed by consumers principally against dealers. We are also subject to other
litigation common to the motor vehicle industry and businesses in general. The
damages and penalties claimed by consumers and others in these types of matters
can be substantial. The relief requested by the plaintiffs varies but includes
requests for compensatory, statutory and punitive damages.

     While we intend to vigorously defend ourselves against such proceedings,
there is a chance that our results of operations, financial condition and cash
flows could be materially and adversely affected by unfavorable outcomes, which,
in turn, could affect our ability to make interest payments on, or repay, the
notes.

IF WE EXPERIENCE PROBLEMS WITH OUR ACCOUNTING AND COLLECTION SYSTEMS, OUR
ABILITY TO PAY THE NOTES MAY BE IMPAIRED.

     Problems with our in-house loan accounting and collection systems could
materially and adversely affect our collections and cash flows and our ability
to make payments on the notes. Any significant failures or defects with our
accounting and collection systems could adversely affect our results of
operations, financial conditions and cash flows and our ability to perform our
obligations under the notes.


                           FORWARD-LOOKING STATEMENTS

     This prospectus contains certain statements of a forward-looking nature
relating to future events or our future performance. These forward-looking
statements are based on our current expectations, assumptions, estimates and
projections about us and our industry. When used in this prospectus, the words
"expects," "believes," "anticipates," "estimates," "intends" and similar
expressions are intended to identify forward-looking statements. These
statements include, but are not limited to, statements of our plans, strategies
and prospects under the captions "Prospectus Summary," "Risk Factors," "Use of
Proceeds," and other statements contained elsewhere in this prospectus.

     These forward-looking statements are only predictions and are subject to
risks and uncertainties that could cause actual events or results to differ
materially from those projected. The cautionary statements made in this
prospectus should be read as being applicable to all related forward-looking
statements wherever they appear in this prospectus. We assume no obligation to
update these forward-looking statements publicly for any reason. Actual results
could differ materially from those anticipated in these forward-looking
statements.

     The risk factors discussed above could cause our actual results to differ
materially from those expressed in any forward-looking statements.


                                       16



                               RATIOS OF EARNINGS TO FIXED CHARGES
                                            Year Ended

                      December 31,   December 31,  December 31,   December 31,  December 31,
                          2001           2002          2003           2004          2005
                          ----           ----          ----           ----          ----
                                                                      
Ratio of earnings
to fixed charges(1)        1.02          1.00           0.88          0.52           1.06

Deficiency(2)
($000s)                                                3,039        15,888


-------------
(1)  For purposes of computing our ratios of earnings to fixed charges, we
     calculated earnings by adding fixed charges to income before income taxes.
     Fixed charges consist of gross interest expenses and one-third of our rent
     expense, which is the amount we believe is representative of the interest
     factor component of our rent expense.
(2)  The deficiency is the amount by which the sum of earnings plus fixed
     charges, as calculated above, fell short of fixed charges. It is thus equal
     to our pre-tax loss recorded in the year ended December 31, 2004.


                                 USE OF PROCEEDS

     If all of the notes are sold with maturities of three years or more, we
would expect to receive approximately $96.7 million of net proceeds from this
offering after deducting the selling agent commissions and estimated offering
expenses payable by us. Although we have no specific plan to allocate the
proceeds, the general purpose of the offering is to raise capital to purchase
motor vehicle contracts and for other general corporate purposes, which may
include payment of general and administrative expenses.


                                       17


                                 CAPITALIZATION

     The following table sets forth our capitalization, as of December 31, 2005.
For a description of the application of the net proceeds, assuming all of the
notes are sold with maturities of two years or more, see "Use of Proceeds" and
"Risk Factors - Risk Factors Relating to the Notes - Our management has broad
discretion over the use of proceeds from the offering."


                                                        As of December 31, 2005
                                                               (in 000's)
                                                         Actual         As adjusted
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued expenses                $      19,568    $      19,568
Warehouse lines of credit                                   35,350           35,350
Notes payable                                                  211              211
Residual interest financing                                 43,745           43,745
Securitization trust debt                                  924,026          924,026
Senior secured debt, related party                          40,000           40,000
Subordinated debt and renewable notes                       18,655          114,000
                                                     -------------    -------------
                                                         1,081,555        1,176,900
                                                     -------------    -------------

SHAREHOLDERS' EQUITY
Preferred stock, $1 par value;
   authorized 5,000,000 shares; none issued                      -                -
Series A preferred stock, $1 par value;
   authorized 5,000,000 shares;
   3,415,000 shares issued; none outstanding                     -                -
Common stock, no par value; authorized
   30,000,000 shares; 21,687,584 shares issued
   and outstanding at December 31, 2005                     66,748           66,748
Retained earnings                                            8,476            8,476
Accumulated other comprehensive loss                        (2,429)          (2,429)
APIC, warrants                                                 794              794
                                                     -------------    -------------
Total Shareholders' Equity                                  73,589           73,589

                                                     -------------    -------------
Total capitalization                                 $   1,155,144    $   1,250,489
                                                     =============    =============



                            DESCRIPTION OF THE NOTES

     GENERAL. The renewable unsecured subordinated notes we are offering will
represent subordinated, unsecured debt obligations of CPS. We will issue the
notes under an indenture between us and Wells Fargo Bank, National Association,
as trustee. The terms and conditions of the notes include those stated in the
indenture and those made part of the indenture by reference to the Trust
Indenture Act of 1939. The following is a summary of the material provisions of
the indenture. For a complete understanding of the notes, you should review the
definitive terms and conditions contained in the indenture, which include
definitions of certain terms used below. A copy of the indenture has been filed
with the SEC as an exhibit to the registration statement of which this
prospectus is a part and is available from us at no charge upon request.

     The notes will be subordinated in right of payment to the prior payment in
full of all our secured, unsecured, senior and subordinate debt, and other
financial obligations, whether outstanding on the date of the indenture or
incurred following the date of the indenture. Subject to limited restrictions
contained in the indenture discussed below, there is no limit under the
indenture on the amount of additional debt we may incur. See " - Subordination"
below.


                                       18


     The notes are not secured by any collateral or lien and we are not required
to establish or maintain a sinking fund to provide for payments on the notes.
See " - No Security; No Sinking Fund" below. In addition, the notes are not bank
certificates of deposit and are not insured by the Federal Deposit Insurance
Corporation, the Securities Investor Protection Corporation or any other agency
or company.

     You may select the amount (subject to a minimum principal amount of $1,000)
and term (ranging from 3 months to 10 years) of the notes you would like to
purchase when you subscribe; however, depending upon our capital requirements,
we may not always offer notes with the requested terms. See " - Denomination"
and " - Term" below.

     We will determine the rate at which we will pay you interest on the notes
at the time of subscription and the rate will be fixed for the term of your
note. Currently available rates will be set forth in interest rate supplements
to this prospectus. The interest rate will vary based on the term to maturity of
the note you purchase and the total principal amount of all notes owned by you
and your immediate family. We may change the interest rates at which we are
offering new or renewed notes based on market conditions, the demand for notes
and other factors. See " - Interest Rate" below.

     Upon acceptance of your subscription to purchase notes, our servicing agent
will create an account in a book-entry registration and transfer system for you,
and credit the principal amount of your subscription to your account. Our
servicing agent will send you a purchase confirmation that will indicate our
acceptance of your subscription. You will have five business days from the
postmark date of your purchase confirmation to rescind your subscription. If
your subscription is rejected by us or our servicing agent, or if you rescind
your subscription during the rescission period, all funds deposited will be
promptly returned to you without any interest. See " - Book-Entry Registration
and Transfer" and " - Rescission Right" below. Investors whose subscriptions for
notes have been accepted and anyone who subsequently acquires notes in a
qualified transfer are referred to as "holders" or "registered holders" in this
prospectus and in the indenture.

     We may modify or supplement the terms of the notes described in this
prospectus from time to time in a supplement to the indenture and a supplement
to this prospectus. Except as set forth under " - Amendment, Supplement And
Waiver" below, any modification or amendment will not affect notes outstanding
at the time of such modification or amendment.

     DENOMINATION. You may purchase notes in the minimum principal amount of
$1,000 or any amount in excess of $1,000. You will determine the original
principal amount of each note you purchase when you subscribe. You may not
cumulate purchases of multiple notes with principal amounts less than $1,000 to
satisfy the minimum denomination requirement.

     TERM. We may offer notes with the following terms to maturity:

         o    three months                  o    three years

         o    six months                    o    four years

         o    one year                      o    five years

         o    two years                     o    ten years

     You will select the term of each note you purchase when you subscribe. You
may purchase multiple notes with different terms by filling in investment
amounts for more than one term on your subscription agreement. However, we may
not always sell notes with all of the above terms.

     INTEREST RATE. The rate of interest we will offer to pay you on notes at
any particular time will vary based upon market conditions, and will be
determined by the length of the term of the notes, the total principal amount of
all notes owned by you and your immediate family, our capital requirements and
other factors described below. The interest rate on a particular note will be
determined at the time of subscription or renewal, and then remain fixed for the
original or renewal term of the note. We will establish and may change the
interest rates payable for notes of various terms and at various investment
levels in an interest rate supplement to this prospectus.


                                       19


     The notes will earn incrementally higher interest rates when, at the time
they are purchased or renewed, the aggregate principal amount of the note
portfolios of the holder and the holder's immediate family is at least $25,000,
$50,000, $75,000 or $100,000. The interest rates payable at each level of
investment will be set forth in an interest rate supplement to this prospectus.
Immediate family members include parents, children, siblings, grandparents, and
grandchildren. Members of sibling families are also considered immediate family
members if the holder's sibling is also a note holder. An investor must identify
his or her immediate family members in the subscription agreement in order to
use their notes to determine the interest rate for such investor's notes.

     Interest rates we offer on the notes may vary based on numerous factors in
addition to length of the term and aggregate principal amount. These factors may
include, but are not limited to:

     o    the desire to attract new investors;

     o    whether the notes exceed certain principal amounts;

     o    whether the notes are being renewed by existing holders; and

     o    whether the notes are beneficially owned by persons residing in
          particular geographic localities.

     COMPUTATION OF INTEREST. We will compute interest on notes on the basis of
a calendar year consisting of 365 days. Interest will compound daily and accrue
from the date of purchase. The date of purchase will be the date we receive and
accept funds if the funds are received prior to 12:01 p.m. central time on a
business day, or the next business day if the funds are received on a
non-business day or at or after 12:01 p.m. central time on a business day. Our
business days are Monday through Friday, except for legal holidays in the State
of Minnesota.

     INTEREST PAYMENT DATES. Holders of notes may elect at the time a
subscription agreement is completed to have interest paid either monthly,
quarterly, semiannually, annually or at maturity. If you choose to have interest
paid monthly, you may elect the day of the month on which interest will be paid,
subject to our approval. For all other payment periods, interest will be paid on
the same day of the month as the purchase date of your note. You will not earn
interest on any rescinded note. See "--Rescission Right" below for additional
information on your right to rescind your investment.

     The period or day of interest payment for each note may be changed one time
only by the holder during the term of the note, subject to our approval.
Requests to change the election must be made in writing to our servicing agent
and will be effective no later than the first business day following the 45th
day after the election change request is received. No specific change in
election form is required and there is no charge to change the election once
during the term of a note. Any interest not paid on an interest payment date
will be paid at maturity.

     PLACE AND METHOD OF PAYMENT. We will pay principal and interest on the
notes by direct deposit to the account you specify in your subscription
documents. We will not accept subscription agreements from investors who are
unwilling to receive their interest payments via direct deposit. If the
foregoing payment method is not available, principal and interest on the notes
will be payable at our principal executive office or at such other place as we
may designate for payment purposes.

     SERVICING AGENT. We have engaged Sumner Harrington Ltd., the investment
banking firm that is helping us sell the notes, to act as our servicing agent
for the notes. Sumner Harrington Ltd.'s responsibilities as servicing agent will
involve the performance of certain administrative and customer service functions
for the notes that we are responsible for performing as the issuer of the notes.
For example, as our servicing agent, Sumner Harrington Ltd. will serve as our
registrar and transfer agent and will manage all aspects of the customer service
function for the notes, including handling all phone inquiries, mailing
investment kits, meeting with investors, processing subscription agreements,
issuing quarterly investor statements and redeeming and repurchasing notes. In
addition, as servicing agent, Sumner Harrington Ltd. will provide us with
monthly reports and analysis regarding the status of the notes, the marketing
efforts and the amount of notes that remain available for purchase and also will
have the ability to exercise certain limited discretion with respect to waiving
early repurchase penalties, changing interest payment dates and rejecting
subscription agreements. Other duties of Sumner Harrington Ltd. as our servicing
agent under the distribution and management agreement are described throughout
this section and under "Plan of Distribution."

     As compensation for its services as servicing agent, we will pay Sumner
Harrington Ltd. an annual portfolio management fee equal to 0.25% of the
weighted average daily principal balance of the notes so long as Sumner
Harrington Ltd. is engaged as our servicing agent, subject to certain maximum
payment provisions set forth below in "Plan of Distribution." The ongoing fee
will be paid monthly. The distribution and management agreement may be


                                       20


terminated by either party by prior notice. Sumner Harrington Ltd.'s duties and
compensation as selling agent under the same agreement are described under "Plan
of Distribution."

     You may contact our servicing agent with any questions about the notes at
the following address and telephone number:

                  Sumner Harrington Ltd.
                  11100 Wayzata Boulevard, Suite 170
                  Minneapolis, MN 55305
                  Telephone: (800) 234-5777
                  Fax: (952) 546-5585

     BOOK-ENTRY REGISTRATION AND TRANSFER. The notes are issued in book entry
form, which means that no physical note is created. Evidence of your ownership
is provided by written confirmation. Except under limited circumstances
described below, holders will not receive or be entitled to receive any physical
delivery of a certificated security or negotiable instrument that evidences
their notes. The issuance and transfer of notes will be accomplished exclusively
through the crediting and debiting of the appropriate accounts in our book-entry
registration and transfer system. Our servicing agent will maintain the
book-entry system.

     The holders of the accounts established upon the purchase or transfer of
notes will be deemed to be the owners of the notes under the indenture. The
holder of the notes must rely upon the procedures established by the trustee to
exercise any rights of a holder of notes under the indenture. Our servicing
agent will regularly provide the trustee with information regarding the
establishment of new accounts and the transfer of existing accounts.

     Our servicing agent will also regularly provide the trustee with
information regarding the total amount of any principal and/or interest due to
holders with regard to the notes on any interest payment date or upon
redemption.

     On each interest payment date, the servicing agent will credit interest due
on each account and direct payments to the holders. The servicing agent will
determine the interest payments to be made to the book-entry accounts and
maintain, supervise and review any records relating to book-entry beneficial
interests in the notes.

     Book-entry notations in the accounts evidencing ownership of the notes are
exchangeable for actual notes in principal denominations of $1,000 and any
amount in excess of $1,000 and fully registered in those names as we direct only
if:

     o    we, at our option, advise the trustee in writing of our election to
          terminate the book-entry system, or

     o    after the occurrence of an event of default under the indenture,
          holders of more than 50% of the aggregate outstanding principal amount
          of the notes advise the trustee in writing that the continuation of a
          book-entry system is no longer in the best interests of the holders of
          notes and the trustee notifies all registered holders of the
          occurrence of any such event and the availability of certificated
          securities that evidence the notes.

     Subject to the exceptions described above, the book-entry interests in
these securities will not be exchangeable for fully registered certificated
notes.

     RESCISSION RIGHT. A purchaser of notes has the right to rescind his or her
investment, without penalty, upon written request to our servicing agent within
five business days from the postmark date of the purchase confirmation (but not
upon transfer or automatic renewal of a note). You will not earn interest on any
rescinded note. We will promptly return any funds sent with a subscription
agreement that is properly rescinded. A written request for rescission, if
personally delivered or delivered via electronic transmission, must be received
by our servicing agent on or prior to the fifth business day following the
mailing of written confirmation by us of the acceptance of your subscription. If
mailed, the written request for rescission must be postmarked on or before the
fifth business day following the mailing of such written confirmation by us.

     In addition, if your subscription agreement is accepted by our servicing
agent at a time when we have determined that a post-effective amendment to the
registration statement of which this prospectus is a part must be filed with the
Securities and Exchange Commission, but such post-effective amendment has not


                                       21


yet been declared effective, our servicing agent will send to you at your
registered address a notice and a copy of the post-effective amendment once it
has been declared effective. You will have the right to rescind your investment
upon written request to our servicing agent within five business days from the
postmark date of the notice that the post-effective amendment has been declared
effective. We will promptly return any funds sent with a subscription agreement
that is properly rescinded without penalty, although any interest previously
paid on the notes being rescinded will be deducted from the funds returned to
you upon rescission. A written request for rescission, if personally delivered
or delivered via electronic transmission, must be received by our servicing
agent on or prior to the fifth business day following the mailing of the notice
that the post-effective amendment has been declared effective. If mailed, the
written request for rescission must be postmarked on or before the fifth
business day following the mailing of such notice.

     The limitations on the amount of notes that can be redeemed early in a
single calendar quarter described under "- Redemption or Repurchase Prior to
Stated Maturity" below do not affect your rescission rights.

     RIGHT TO REJECT SUBSCRIPTIONS. Our servicing agent may reject any
subscription for notes in its sole discretion. If a subscription for notes is
rejected, we will promptly return any funds sent with that subscription, without
interest.

     RENEWAL OR REDEMPTION ON MATURITY. Approximately 15, but not less than 10
days prior to maturity of your note, our servicing agent will send you a notice
at your registered address indicating that your note is about to mature and
whether we will allow automatic renewal of your note. If we allow you to renew
your note, our servicing agent will also send to you a current interest rate
supplement and, if the prospectus has changed since the delivery of this
prospectus in connection with your original subscription or any prior renewal, a
current prospectus or prospectus supplement. The interest rate supplement will
set forth the interest rates then in effect. The notice will recommend that you
review the prospectus and any prospectus supplement, along with the interest
rate supplement, prior to exercising one of the below options. If we do not send
you a new prospectus because the prospectus has not changed since the delivery
of this prospectus in connection with your original subscription or any prior
renewal, we will send you a new prospectus upon your request. Unless the
election period is extended as described below, you will have until 15 days
after the maturity date to exercise one of the following options:

     o    You can do nothing, in which case your note will automatically renew
          for a new term equal to the original term at the interest rate in
          effect at the time of renewal. If your note pays interest only at
          maturity, all accrued interest will be added to the principal amount
          of your note upon renewal. For notes with other payment options,
          interest will be paid on the renewed note on the same schedule as the
          original note.

     o    You can elect repayment of your note, in which case the principal
          amount will be repaid in full along with any accrued but unpaid
          interest. If you choose this option, your note will not earn interest
          on or after the maturity date.

     o    You can elect repayment of your note and use all or part of the
          proceeds to purchase a new note with a different term or principal
          amount. To exercise this option, you will need to complete a
          subscription agreement for the new note and mail it along with your
          request to our servicing agent. The issue date of the new note will be
          the maturity date of the old note. Any proceeds from the old note that
          are not applied to the new note will be sent to you.

     o    If your note pays interest only at maturity, you can receive the
          accrued interest that you have earned during the note term just ended
          while allowing the principal amount of your note to roll over and
          renew for the same term at the interest rate then in effect. To
          exercise this option, you will need to call, fax or send a written
          request to our servicing agent.

     The foregoing options will be available to holders until termination or
redemption under the indenture and the notes by either the holder or us.
Interest will accrue from the first day of each renewed term. Each renewed note
will retain all its original provisions, including provisions relating to
payment, except that the interest rate payable during any renewal term will be
the interest rate that is being offered at that time to other holders with
similar aggregate note portfolios for notes of the same term as set forth in the
interest rate supplement delivered with the maturity notice. If similar notes
are not then being offered, the interest rate upon renewal will be the rate
specified by us on or before the maturity date, or the rate of the existing note
if no such rate is specified.


                                       22


     If we notify the holder of our intention to repay a note at maturity, we
will pay the holder the principal amount and any accrued but unpaid interest on
the stated maturity date. Similarly, if, within 15 days after a note's stated
maturity date (or during any applicable extension of the 15 day period, as
described below), the holder requests repayment with respect to a note, we will
pay the holder the principal amount of the note plus accrued but unpaid interest
up to, but not including, the note's stated maturity date. In the event that a
holder's regularly scheduled interest payment date falls after the maturity date
of the note but before the date on which the holder requests repayment, the
holder may receive interest payments that include interest for periods after the
maturity date of the note. If this occurs, the excess interest will be deducted
from our final payment of the principal amount of the note to the holder. We
will initiate payment to any holder timely requesting repayment by the later of
the maturity date or five business days after the date on which we receive such
notice from the holder. Because payment is made by ACH transfer, funds may not
be received in the holder's account for 2 to 3 business days. Requests for
repayment should be made to our servicing agent in writing.

     We will be required from time to time to file post-effective amendments to
the registration statement of which this prospectus is a part to update the
information it contains. If you would otherwise be required to elect to have
your notes renewed or repaid following their stated maturity at a time when we
have determined that a post-effective amendment must be filed with the
Securities and Exchange Commission, but such post-effective amendment has not
yet been declared effective, the period during which you can elect renewal or
repayment will be automatically extended until ten days following the postmark
date of a notice that will be sent to you at your registered address by the
servicing agent that the post-effective amendment has been declared effective.
In the event that a holder's regularly scheduled interest payment date falls
after the maturity date of the note but before the date on which the holder
requests repayment, the holder may receive an interest payment that includes
interest for periods after the maturity date of the note. If this occurs, the
excess interest will be deducted from our final payment of the principal amount
of the note to the holder. All other provisions relating to the renewal or
redemption of notes upon their stated maturity described above shall remain
unchanged.

     REDEMPTION OR REPURCHASE PRIOR TO STATED MATURITY. The notes may be
redeemed prior to stated maturity only as set forth in the indenture and
described below. The holder has no right to require us to prepay or repurchase
any note prior to its maturity date as originally stated or as it may be
extended, except as indicated in the indenture and described below.

          REDEMPTION BY US. We have the right to redeem any note at any time
     prior to its stated maturity upon 30 days written notice to the holder of
     the note. The holder of the note being redeemed will be paid a redemption
     price equal to the outstanding principal amount thereof plus but accrued
     and unpaid interest up to but not including the date of redemption without
     any penalty or premium. We may use any criteria we choose to determine
     which notes we will redeem if we choose to do so. We are not required to
     redeem notes on a pro rata basis.

          REPURCHASE ELECTION UPON DEATH OR TOTAL PERMANENT DISABILITY. Notes
     may be repurchased prior to maturity, in whole and not in part, at the
     election of a holder who is a natural person (including notes held in an
     individual retirement account), by giving us written notice within 45 days
     following the holder's total permanent disability, as established to our
     satisfaction, or at the election of the holder's estate, by giving written
     notice within 45 days following his or her death. Subject to the
     limitations described below, we will repurchase the notes within 10 days
     after the later to occur of the request for repurchase or the establishment
     to our satisfaction of the holder's death or total permanent disability.
     The repurchase price, in the event of such a death or total permanent
     disability, will be the principal amount of the notes, plus interest
     accrued and not previously paid up to but not including the date of
     repurchase. If spouses are joint registered holders of a note, the right to
     elect to have us repurchase will apply when either registered holder dies
     or suffers a total permanent disability. If the note is held jointly by two
     or more persons who are not legally married, none of these persons will
     have the right to request that we repurchase the notes unless all joint
     holders have either died or suffered a total permanent disability. If the
     note is held by a person who is not a natural person such as a trust,
     partnership, corporation or other similar entity, the right to request
     repurchase upon death or total permanent disability does not apply.

          REPURCHASE AT REQUEST OF HOLDER. In addition to the right to elect
     repurchase upon death or total permanent disability, a holder may request
     that we repurchase one or more of the holders' notes prior to maturity, in
     whole and not in part, at any time by giving us written notice. Subject to
     approval, at our sole discretion, and the limitations described below, we
     will repurchase the holder's note(s) specified in the notice within 10 days
     of receipt of the notice. The repurchase price, in the event we elect to
     repurchase the notes, will be the principal amount of the note, plus
     interest accrued and not previously paid (up to but not including the date


                                       23


     of repurchase), minus a repurchase penalty. The early repurchase penalty
     for a note with a three month maturity is the interest accrued on such note
     up to the date of repurchase, not to exceed three months of simple interest
     at the existing rate. The early repurchase penalty for a note with a
     maturity of six months or longer is the interest accrued on such note up to
     the date of repurchase, not to exceed six months of simple interest at the
     existing rate. The penalty for early repurchase may be waived or reduced at
     the limited discretion of our servicing agent.

          LIMITATIONS ON REQUIREMENTS TO REPURCHASE. Our obligation to
     repurchase notes prior to maturity for any reason will be subject to a
     calendar quarter limit equal to the greater of $1 million of aggregate
     principal amount for all holders or 2% of the total principal amount of all
     notes outstanding at the end of the previous calendar quarter. This limit
     includes any notes we repurchase upon death or total permanent disability
     of the holder and any notes that we repurchase pursuant to the holders'
     right to elect repurchase. Repurchase requests will be honored in the order
     in which they are received, to the extent possible, and any repurchase
     request not honored in a calendar quarter will be honored in the next
     calendar quarter, to the extent possible, since repurchases in the next
     calendar quarter are also subject to the same calendar quarter limitation.
     For purposes of determining the order in which repurchase requests are
     received, a repurchase request will be deemed made on the later of the date
     on which it is received by us or, if applicable, the date on which the
     death or total permanent disability is established to our reasonable
     satisfaction.

          MODIFICATIONS TO REPURCHASE POLICY. We may modify the policies on
     repurchase in the future. No modification will affect the right of
     repurchase applicable to any note outstanding at the time of any such
     modification.

     TRANSFERS. The notes are not negotiable debt instruments and, subject to
certain exceptions, will be issued only in book-entry form. The purchase
confirmation issued upon our acceptance of a subscription is not a certificated
security or negotiable instrument, and no rights of record ownership can be
transferred without our prior written consent. Ownership of notes may be
transferred on the servicing agent's register only as follows:

     o    The holder must deliver written notice requesting a transfer to our
          servicing agent signed by the holder(s) or such holder's duly
          authorized representative on a form to be supplied by our servicing
          agent.

     o    We must provide our written consent to the proposed transfer.

     o    We or our servicing agent may require a legal opinion from counsel
          satisfactory to the servicing agent that the proposed transfer will
          not violate any applicable securities laws.

     o    We or our servicing agent may require a signature guarantee in
          connection with such transfer.

     Upon transfer of a note, our servicing agent will provide the new holder of
the note with a purchase confirmation that will evidence the transfer of the
account on our servicing agent's records. We or our servicing agent may charge a
reasonable service charge in connection with the transfer of any note.

     QUARTERLY STATEMENTS. Our servicing agent will provide holders of the notes
with quarterly statements, which will indicate, among other things, the account
balance at the end of the quarter, interest credited, redemptions or repurchases
made, if any, and the interest rate paid during the quarter. These statements
will be mailed not later than the 10th business day following the end of each
calendar quarter. Our servicing agent may charge such holders a reasonable fee
to cover the charges incurred in providing such information.

     SUBORDINATION. The indebtedness evidenced by the notes, and any interest
thereon, is subordinated in right of payment to all of our senior debt,
including indebtedness held by our subsidiaries that are special purpose
entities. "Senior debt" means all of our secured, unsecured, senior or
subordinate indebtedness, as well as other financial obligations of the company,
whether outstanding on the date of this prospectus or incurred after the date of
this prospectus, whether such indebtedness is or is not specifically designated
as being senior debt in its defining instruments, other than (i) existing
outstanding unsecured subordinated indebtedness in the amount of $14 million,
and (ii) any future offerings of additional renewable unsecured subordinated
notes, both of which will rank equally with the notes. Any documents, agreements
or instruments evidencing or relating to any senior debt may be amended,
restated, supplemented and/or renewed from time to time without requiring any
notice to or consent of any holder of notes or any person or entity acting on
behalf of any such holder or the trustee.


                                       24


     The indenture does not prevent holders of senior debt from disposing of, or
exercising any other rights with respect to, any or all of the collateral
securing the senior debt. As of December 31, 2005, we had approximately $1,043.3
million of debt outstanding that is senior to the notes, of which approximately
$1,003.1 million was issued by our consolidated special purpose entities.
Including an additional approximately $103.3 million of debt that does not
appear on our consolidated financial statements (which was issued by our
off-balance sheet special purpose entities), we had approximately $1,146.6
million of debt outstanding that is senior to the notes.

     Except for certain limited restrictions, the terms of the notes or the
indenture do not impose any limitation on the amount of senior debt or other
indebtedness we may incur, although our existing senior debt agreements may
restrict us from incurring new senior debt. See "Risk Factors - Risk Factors
Relating to the Notes - Because the notes rank junior to substantially all of
our existing and future debt and other financial obligations, your notes will
lack priority in payment."

     The notes are not guaranteed by any of our subsidiaries, affiliates or
control persons. Accordingly, in the event of a liquidation or dissolution of
one of our subsidiaries, creditors of that subsidiary will be paid in full, or
provision for such payment will be made, from the assets of that subsidiary
prior to distributing any remaining assets to us as a shareholder of that
subsidiary. Therefore, in the event of liquidation or dissolution of a
subsidiary, no assets of that subsidiary may be used to make payment to the
holders of the notes until the creditors of that subsidiary are paid in full
from the assets of that subsidiary.

     In the event of any liquidation, dissolution or any other winding up of us,
or of any receivership, insolvency, bankruptcy, readjustment, reorganization or
similar proceeding under the U.S. Bankruptcy Code or any other applicable
federal or state law relating to bankruptcy or insolvency, or during the
continuation of any event of default on the senior debt, no payment may be made
on the notes until all senior debt has been paid in full or provision for such
payment has been made to the satisfaction of the senior debt holders. If any of
the above events occurs, holders of senior debt may also submit claims on behalf
of holders of the notes and retain the proceeds for their own benefit until they
have been fully paid, and any excess will be turned over to the holders of the
notes. If any distribution is nonetheless made to holders of the notes, the
money or property distributed to them must be paid over to the holders of the
senior debt to the extent necessary to pay senior debt in full.

     We will not make any payment, direct or indirect (whether for interest,
principal, as a result of any redemption or repurchase at maturity, on default,
or otherwise), on the notes and any other indebtedness being subordinated to the
payment of the notes, and neither the holders of the notes nor the trustee will
have the right, directly or indirectly, to sue to enforce the indenture or the
notes, if a default or event of default under any senior debt has occurred and
is continuing, or if any default or event of default under any senior debt would
result from such payment, in each case unless and until:

     o    the default and event of default has been cured or waived or has
          ceased to exist; or

     o    the end of the period commencing on the date the trustee receives
          written notice of default from a holder of the senior debt and ending
          on the earlier of

          --   the trustee's receipt of a valid waiver of default from the
               holder of senior debt; or

          --   the trustee's receipt of a written notice from the holder of
               senior debt terminating the payment blockage period.

     Provided, however, that if any of the blockage events described above has
occurred and 179 days have passed since the trustee's receipt of the notice of
default without the occurrence of the cure, waiver or termination of all
blockage periods described above, the trustee may thereafter sue on and enforce
the indenture and the notes as long as any funds paid as a result of any such
suit or enforcement action shall be paid toward the senior debt until it is
indefeasibly paid in full before being applied to the notes.

     NO SECURITY; NO SINKING FUND. The notes are unsecured, which means that
none of our tangible or intangible assets or property, nor any of the assets or
property of any of our subsidiaries, has been set aside or reserved to make
payment to the holders of the notes in the event that we default on our
obligations to the holders. In addition, we will not contribute funds to any
separate account, commonly known as a sinking fund, to repay principal or
interest due on the notes upon maturity or default. See "Risk Factors - Risk
Factors Relating to the Notes - Because the notes will have no sinking fund,
security, insurance or guarantee, you may lose all or a part of your investment
in the notes if we do not have enough cash to pay the notes."


                                       25


     RESTRICTIVE COVENANTS. The indenture contains certain limited restricted
covenants that require us to maintain certain financial standards and restrict
us from certain actions as set forth below.

     The indenture provides that, so long as the notes are outstanding:

     o    we will maintain a positive net worth, which includes stockholder's
          equity and any of our debt that is subordinate to the notes; and

     o    we will not declare or pay any dividends or other payments of cash or
          other property solely in respect of our capital stock to our
          stockholders (other than a dividend paid in shares of our capital
          stock on a pro rata basis to all our stockholders) unless no default
          and no event of default with respect to the notes exists or would
          exist immediately following the declaration or payment of the dividend
          or other payment.

     See "Risk Factors - Risk Factors Relating to the Notes - Because there are
limited restrictions on our activities under the Indenture, you will have only
limited protection under the indenture."

     CONSOLIDATION, MERGER OR SALE. The indenture generally permits a
consolidation or merger between us and another entity. It also permits the sale
or transfer by us of all or substantially all of our property and assets. These
transactions are permitted if:

     o    the resulting or acquiring entity, if other than us, is a United
          States corporation, limited liability company or limited partnership
          and assumes all of our responsibilities and liabilities under the
          indenture, including the payment of all amounts due on the notes and
          performance of the covenants in the indenture; and

     o    immediately after the transaction, and giving effect to the
          transaction, no event of default under the indenture exists.

     If we consolidate or merge with or into any other entity or sell or lease
all or substantially all of our assets, according to the terms and conditions of
the indenture, the resulting or acquiring entity will be substituted for us in
the indenture with the same effect as if it had been an original party to the
indenture. As a result, the successor entity may exercise our rights and powers
under the indenture, in our name and we will be released from all our
liabilities and obligations under the indenture and under the notes.

     EVENTS OF DEFAULT. The indenture provides that each of the following
constitutes an event of default:

     o    failure to pay interest on a note within 15 days after the due date
          for such payment (whether or not prohibited by the subordination
          provisions of the indenture);

     o    failure to pay principal on a note within 15 days after the due date
          for such payment (whether or not prohibited by the subordination
          provisions of the indenture);

     o    our failure to observe or perform any material covenant, condition or
          agreement or our breach of any material representation or warranty,
          but only after we have been given notice of such failure or breach and
          such failure or breach is not cured within 60 days after our receipt
          of notice;

     o    defaults in certain of our other payment obligations that result in
          such payment obligations becoming or being declared immediately due
          and payable and such declaration is not rescinded or annulled within
          60 days after our receipt of notice of such declaration; and

     o    certain events of bankruptcy or insolvency with respect to us.

     If any event of default occurs and is continuing (other than an event of
default involving certain events of bankruptcy or insolvency with respect to
us), the trustee or the holders of at least a majority in principal amount of
the then outstanding notes may by notice to us declare the unpaid principal of
and any accrued interest on the notes to be due and payable immediately. So long
as any senior debt is outstanding, however, and a payment blockage on the notes
is in effect, a declaration of this kind will not be effective, and neither the
trustee nor the holders of notes may enforce the indenture or the notes, except
as otherwise set forth above in "- Subordination". In the event senior debt is
outstanding and no payment blockage on the notes is in effect, a declaration of
this kind will not become effective until the later of:


                                       26


     o    the day which is five business days after the receipt by us and the
          holders of senior debt of such written notice of acceleration; or

     o    the date of acceleration of any senior debt.

     In the case of an event of default arising from certain events of
bankruptcy or insolvency, with respect to us, all outstanding notes will become
due and payable without further action or notice.

     Holders of the notes may not enforce the indenture or the notes except as
provided in the indenture. Subject to certain limitations, holders of a majority
in principal amount of the then outstanding notes may direct the trustee in its
exercise of any trust power. The trustee may withhold from holders of the notes
notice of any continuing default or event of default (except a default or event
of default relating to the payment of principal or interest on the notes) if the
trustee in good faith determines that withholding notice would have no material
adverse effect on the holders.

     The holders of a majority in aggregate principal amount of the notes then
outstanding by notice to the trustee may, on behalf of the holders of all of the
notes, waive any existing default or event of default and its consequences under
the indenture, except:

     o    a continuing default or event of default in the payment of interest
          on, or the principal of, a note held by a non-consenting holder; or

     o    a waiver that would conflict with any judgment or decree.

     We are required to deliver to the trustee within 120 days of the end of our
fiscal year a certificate regarding compliance with the indenture, and we are
required, upon becoming aware of any default or event of default, to deliver to
the trustee a certificate specifying such default or event of default and what
action we are taking or propose to take with respect to the default or event of
default.

     AMENDMENT, SUPPLEMENT AND WAIVER. Except as provided in this prospectus or
the indenture, the terms of the indenture or the notes then outstanding may be
amended or supplemented with the consent of the holders of at least a majority
in principal amount of the notes then outstanding, and any existing default or
compliance with any provision of the indenture or the notes may be waived with
the consent of the holders of a majority in principal amount of the then
outstanding notes.

     Notwithstanding the foregoing, an amendment or waiver will not be effective
with respect to the notes held by a holder who has not consented if it has any
of the following consequences:

     o    reduces the aggregate principal amount of notes whose holders must
          consent to an amendment, supplement or waiver;

     o    reduces the principal of or changes the fixed maturity of any note or
          alters the repurchase or redemption provisions or the price at which
          we shall offer to repurchase or redeem the note;

     o    reduces the rate of or changes the time for payment of interest,
          including default interest, on any note;

     o    waives a default or event of default in the payment of principal or
          interest on the notes, except a rescission of acceleration of the
          notes by the holders of at least a majority in aggregate principal
          amount of the then outstanding notes and a waiver of the payment
          default that resulted from such acceleration;.

     o    makes any note payable in money other than that stated in this
          prospectus;

     o    makes any change in the provisions of the indenture relating to
          waivers of past defaults or the rights of holders of notes to receive
          payments of principal of or interest on the notes;

     o    makes any change to the subordination provisions of the indenture that
          has a material adverse effect on holders of notes;

     o    modifies or eliminates the right of the estate of a holder or a holder
          to cause us to repurchase a note upon the death or total permanent
          disability of a holder; or

     o    makes any change in the foregoing amendment and waiver provisions.


                                       27


     Notwithstanding the foregoing, without the consent of any holder of the
notes, we and the trustee may amend or supplement the indenture or the notes:

     o    to cure any ambiguity, defect or inconsistency;

     o    to provide for assumption of our obligations to holders of the notes
          in the case of a merger, consolidation or sale of all or substantially
          all of our assets;

     o    to provide for additional uncertificated or certificated notes;

     o    to make any change that does not adversely affect the legal rights
          under the indenture of any such holder, including but not limited to
          an increase in the aggregate dollar amount of notes which may be
          outstanding under the indenture;

     o    to modify our policy regarding repurchases elected by a holder of
          notes prior to maturity and our policy regarding repurchase of the
          notes prior to maturity upon the death or total permanent disability
          of any holder of the notes, but such modifications shall not
          materially adversely affect any then outstanding notes; or

     o    to comply with requirements of the SEC in order to effect or maintain
          the qualification of the indenture under the Trust Indenture Act.

     THE TRUSTEE. Wells Fargo Bank, National Association has agreed to be the
trustee under the indenture. The indenture contains certain limitations on the
rights of the trustee, should it become one of our creditors, to obtain payment
of claims in certain cases, or to realize on certain property received in
respect of any claim as security or otherwise. The trustee will be permitted to
engage in other transactions with us.

     Subject to certain exceptions, the holders of a majority in principal
amount of the then outstanding notes will have the right to direct the time,
method and place of conducting any proceeding for exercising any remedy
available to the trustee. The indenture provides that in case an event of
default specified in the indenture shall occur and not be cured, the trustee
will be required, in the exercise of its power, to use the degree of care of a
reasonable person in the conduct of his own affairs. Subject to such provisions,
the trustee will be under no obligation to exercise any of its rights or powers
under the indenture at the request of any holder of notes, unless the holder
shall have offered to the trustee security and indemnity satisfactory to it
against any loss, liability or expense.

     RESIGNATION OR REMOVAL OF THE TRUSTEE. The trustee may resign at any time,
or may be removed by the holders of a majority of the aggregate principal amount
of the outstanding notes. In addition, upon the occurrence of contingencies
relating generally to the insolvency of the trustee or the trustee's
ineligibility to serve as trustee under the Trust Indenture Act of 1939, as
amended, we may remove the trustee. However, no resignation or removal of the
trustee may become effective until a successor trustee has accepted the
appointment as provided in the indenture.

     REPORTS TO TRUSTEE. Our servicing agent will provide the trustee with
quarterly reports containing any information reasonably requested by the
trustee. These quarterly reports will include information on each note
outstanding during the preceding quarter, including outstanding principal
balance, interest credited and paid, transfers made, any redemption or
repurchase and interest rate paid.

     NO PERSONAL LIABILITY OF OUR OR OUR SERVICING AGENT'S DIRECTORS, OFFICERS,
EMPLOYEES AND STOCKHOLDERS. No director, officer, employee, incorporator or
stockholder of ours or our servicing agent, will have any liability for any of
our obligations under the notes, the indenture or for any claim based on, in
respect to, or by reason of, these obligations or their creation. Each holder of
the notes waives and releases these persons from any liability, including any
liability arising under applicable securities laws. The waiver and release are
part of the consideration for issuance of the notes. We have been advised that
the waiver may not be effective to waive liabilities under the federal
securities laws and it is the view of the SEC that such a waiver is against
public policy.

     SERVICE CHARGES. We and our servicing agent may assess service charges for
changing the registration of any note to reflect a change in name of the holder,
multiple changes in interest payment dates or transfers (whether by operation of
law or otherwise) of a note by the holder to another person.


                                       28


     ADDITIONAL SECURITIES. We may offer additional classes of securities with
terms and conditions different from the notes currently being offered in this
prospectus. We will amend or supplement this prospectus if and when we decide to
offer to the public any additional class of security under this prospectus. If
we sell the entire principal amount of notes offered in this prospectus, we may
register and sell additional notes by amending this prospectus, but we are under
no obligation to do so.

     VARIATIONS BY STATE. We may offer different securities and vary the terms
and conditions of the offer (including, but not limited to, different interest
rates and service charges for all notes) depending upon the state where the
purchaser resides.

     INTEREST WITHHOLDING. We will withhold 28% (which rate is scheduled to
increase to 31% for payments made after December 31, 2010) of any interest paid
to any investor who has not provided us with a social security number, employer
identification number, or other satisfactory equivalent in the subscription
agreement (or another document) or where the Internal Revenue Service has
notified us that backup withholding is otherwise required. Please read "Material
Federal Income Tax Consequences - Reporting and Backup Withholding."

     LIQUIDITY. There is not currently a trading market for the notes, and we do
not expect that a trading market for the notes will develop.

     SATISFACTION AND DISCHARGE OF INDENTURE. The indenture shall cease to be of
further effect upon the payment in full of all of the outstanding notes and the
delivery of an officer's certificate to the trustee stating that we do not
intend to issue additional notes under the indenture or, with certain
limitations, upon deposit with the trustee of funds sufficient for the payment
in full of all of the outstanding notes.

     REPORTS. We currently publish annual reports containing financial
statements and quarterly reports containing financial information for the first
three quarters of each fiscal year. We will send copies of these reports, at no
charge, to any holder of notes who sends a written request to:

                        Consumer Portfolio Services, Inc.
                            16355 Laguna Canyon Road
                            Irvine, California 92618
                         Attention: Corporate Secretary
                                 (949) 753-6800


                    MATERIAL FEDERAL INCOME TAX CONSEQUENCES

     The following discussion is our counsel's opinion of the material federal
income tax consequences relating to the ownership and disposition of the notes.
The discussion is based upon the current provisions of the Internal Revenue Code
of 1986, as amended, regulations issued under the Internal Revenue Code and
judicial or ruling authority, all of which are subject to change that may be
applied retroactively. The discussion assumes that the notes are held as capital
assets and does not discuss the federal income tax consequences applicable to
all categories of investors, some of which may be subject to special rules such
as banks, tax-exempt organizations, insurance companies, dealers in securities
or currencies, persons that will hold notes as a position in a hedging, straddle
or conversion transactions, or persons that have a functional currency other
than the U.S. dollar. If a partnership holds notes, the tax treatment of a
partner will generally depend on the status of the partner and on the activities
of the partnership. In addition, it does not deal with holders other than
original purchasers. You are urged to consult your own tax advisor to determine
the specific federal, state, local and any other tax consequences applicable to
you relating to your ownership and disposition of the notes.

INTEREST INCOME ON THE NOTES

     Subject to the discussion below applicable to "non-U.S. holders," interest
paid on the notes will generally be taxable to you as ordinary income as the
income is paid if you are a cash method taxpayer or as the income accrues if you
are an accrual method taxpayer.

     However, a note with a term of one year or less, which we refer to in this
discussion as a "short-term note," will be treated as having been issued with
original issue discount or "OID" for tax purposes equal to the total payments on
the note over its issue price. If you are a cash method holder of a short-term
note you are not required to include this OID as income currently unless you
elect to do so. Cash method holders who make that election and accrual method
holders of short-term notes are generally required to recognize the OID in
income currently as it accrues on a straight-line basis unless the holder elects
to accrue the OID under a constant yield method. Under a constant yield method,
you generally would be required to include in income increasingly greater
amounts of OID in successive accrual periods.


                                       29


     Cash method holders of short-term notes who do not include OID in income
currently will generally be taxed on stated interest at the time it is received
and will treat any gain realized on the disposition of a short-term note as
ordinary income to the extent of the accrued OID generally reduced by any prior
payments of interest. In addition, these cash method holders will be required to
defer deductions for certain interest paid on indebtedness related to purchasing
or carrying the short-term notes until the OID is included in the holder's
income.

     There are also some situations in which a cash basis holder of a note
having a term of more than one year may have taxable interest income with
respect to a note before any cash payment is received with respect to the note.
If you report income on the cash method and you hold a note with a term longer
than one year that pays interest only at maturity, you generally will be
required to include OID accrued during the original term (without regard to
renewals) as ordinary gross income as the OID accrues. OID accrues under a
constant yield method, as described above.

TREATMENT OF DISPOSITIONS OF NOTES

     Upon the sale, exchange, retirement or other taxable disposition of a note,
you will recognize gain or loss in an amount equal to the difference between the
amount realized on the disposition and your adjusted tax basis in the note. Your
adjusted tax basis of a note generally will equal your original cost for the
note, increased by any accrued but unpaid interest (including OID) you
previously included in income with respect to the note and reduced by any
principal payments you previously received with respect to the note. Any gain or
loss will be capital gain or loss, except for gain representing accrued interest
not previously included in your income. This capital gain or loss will be
long-term or short-term capital gain or loss, depending on whether the note had
been held for more than one year or for one year or less.

NON-U.S. HOLDERS

     Generally, if you are a nonresident alien individual or a non-U.S.
corporation and do not hold the note in connection with a United States trade or
business, interest paid and OID accrued on the notes will be treated as
"portfolio interest" and therefore will be exempt from a 30% United States
withholding tax. In that case, you will be entitled to receive interest payments
on the notes free of United States federal income tax provided that you
periodically provide a statement on applicable IRS forms certifying under
penalty of perjury that you are not a United States person and provide your name
and address. In addition, in that case you will not be subject to United States
federal income tax on gain from the disposition of a note unless you are an
individual who is present in the United States for 183 days or more during the
taxable year in which the disposition takes place and certain other requirements
are met. Interest paid and accrued OID paid to a non-U.S. person are not subject
to withholding if they are effectively connected with a United States trade or
business conducted by that person and we are provided a properly executed IRS
Form W-8ECI. Those non-U.S. persons will, however, generally be subject to the
regular United States income tax.

REPORTING AND BACKUP WITHHOLDING

     We will report annually to the Internal Revenue Service and to holders of
record that are not excepted from the reporting requirements any information
that may be required with respect to interest or OID on the notes.

     Under certain circumstances, as a holder of a note, you may be subject to
"backup withholding" at a 28% rate. After December 31, 2010, the backup
withholding rate is scheduled to increase to 31%. Backup withholding may apply
to you if you are a United States person and, among other circumstances, you
fail to furnish on IRS Form W-9 or a substitute Form W-9 your Social Security
number or other taxpayer identification number to us. Backup withholding may
apply, under certain circumstances, if you are a non-U.S. person and fail to
provide us with the statement necessary to establish an exemption from federal
income and withholding tax on interest on the note. Backup withholding, however,
does not apply to payments on a note made to certain exempt recipients, such as
corporations and tax-exempt organizations, and to certain non-U.S. persons.
Backup withholding is not an additional tax and may be refunded or credited
against your United States federal income tax liability, provided that you
furnish certain required information.

     This federal tax discussion is included for general information only and
may not be applicable depending upon your particular situation. You are urged to
consult your own tax advisor with respect to the specific tax consequences to
you of the ownership and disposition of the notes, including the tax
consequences under state, local, foreign and other tax laws and the possible
effects of changes in federal or other tax laws.


                                       30


                              PLAN OF DISTRIBUTION

     Under the terms and subject to the conditions contained in a distribution
and management agreement between us and Sumner Harrington Ltd., Sumner
Harrington Ltd. has agreed to serve as our selling agent and to use its best
efforts to sell the notes on the terms set forth in this prospectus. The selling
agent is not obligated to sell any minimum amount of notes or to purchase any of
the notes.

     The selling agent proposes to offer the notes to the public on our behalf
on the terms set forth in this prospectus and the prospectus supplements that we
file from time to time. The selling agent plans to market the notes directly to
the public through newspaper, radio, internet, direct mail and other
advertising. In addition, our selling agent will manage certain administrative
and customer service functions relating to the notes, including handling all
inquiries from potential investors, mailing investment kits, meeting with
investors, processing subscription agreements and responding to all written and
telephonic questions relating to the notes. Upon prior written notice to the
selling agent, we may elect to use a different selling agent or perform these
duties ourselves. The selling agent's servicing responsibilities are described
under "Description of the Notes - Servicing Agent."

     We have agreed to reimburse the selling agent for its out-of-pocket
expenses incurred in connection with the offer and sale of the notes, including
document fulfillment expenses, legal and accounting fees, regulatory fees, due
diligence expenses and marketing costs. Under the terms of the distribution and
management agreement, we also will pay our selling agent a commission equal to
3.00% of the principal amount of all notes sold. For notes with maturities of
three years or more, the entire 3.00% commission will be paid to the selling
agent at the time of issuance and no additional commission will be paid upon
renewal. For notes with maturities of less than three years, the gross 3.00%
commission will be paid in PRO RATA installments upon the original issuance and
each renewal, if any, over the first three years. Accordingly, the selling agent
will not receive the entire 3.00% gross commission on notes with terms of less
than three years unless the notes are successively renewed for three years. The
selling agent may engage or allow selected brokers or dealers to sell notes for
a commission, at no additional cost to us.

     Under the distribution and management agreement, we have also agreed to pay
Sumner Harrington Ltd. an annual portfolio management fee equal to 0.25% of the
weighted average principal balance of the notes outstanding for its services as
servicing agent. In exchange for the annual portfolio management fee, Sumner
Harrington Ltd. will manage all customer service functions concerning the notes
and act as an agent between us and the purchasers of the notes. The annual
portfolio management fee also covers all costs relating to maintenance of the
investor relationship after the purchase of notes. This includes, among other
things, addressing all investor inquiries regarding the notes, the preparation
of all confirmations, notices and statements, the coordination of interest
payments with us and the paying agent, the establishment and maintenance of
records relating to the notes, the preparation of all reports, statements and
analyses regarding the notes, and all out-of-pocket expenses for the printing
and mailing of confirmations, notices and statements to the investors. See
"Description of the Notes - Servicing Agent." The amount of this fee will depend
upon a number of variables, including the pace at which notes are sold, the
terms of the notes sold and whether the notes are redeemed or repurchased.

     The distribution and management agreement may be terminated by either us or
Sumner Harrington Ltd. upon giving prior notice.

     The selling agent and we have engaged Sumner Harrington Agency, Inc., an
advertising and marketing subsidiary of Sumner Harrington Ltd., to directly
provide or manage the advertising and marketing functions related to the sale of
the notes, which fee will be limited to 1% of the aggregate principal amount of
the notes. These services include media planning, media buying, creative and
copy development, direct mail services, literature fulfillment, commercial
printing, list management, list brokering, advertising consulting, efficiency
analyses and other similar activities. Sumner Harrington Agency, Inc. is
compensated directly by us or its sub-service providers for these advertising
and marketing services. This compensation is consistent with accepted normal
advertising and marketing industry standards for similar services.

     The selling agent and its affiliate will only be compensated to the extent
that notes are sold in the offering. The table below summarizes the maximum
possible amounts of compensation or reimbursement that we will pay the selling
agent and its affiliate for services rendered in offering and selling the notes,
serving as the servicing agent, and providing and managing the advertising and
marketing functions related to the sale of the notes. In no event will the total
commission plus the total cost of the remaining line items exceed 6.425% of the
aggregate principal amount of the notes.


                                       31


    Compensation and Reimbursement         % of Offering           Amount(1)
    ------------------------------         -------------           ---------

Total commissions                             3.000%             $ 3,000,000(2)
Selling agent's legal counsel fees            0.075%             $    75,000
Document fulfillment expenses                 0.100%             $   100,000
Annual portfolio management fee               2.250%             $ 2,250,000
Media placement and management fee            1.000%             $ 1,000,000

----------------
(1)  All amounts assume the sale of 100% of aggregate principal amount of notes
     offered and represent the maximum possible amount payable to the selling
     agent or its affiliate over the entire term of the offering. If less than
     100% of the aggregate principal amount of the notes are sold in the
     offering, the amounts actually paid to the agent or its affiliate for
     commissions and annual portfolio management fees will be less. In no event
     will the compensation paid to the selling agent or its affiliates for
     commissions and annual portfolio management fees exceed the percentage
     amounts shown, as applied to the notes actually sold.
(2)  Assumes that each note with a term of less than three years is successively
     renewed for a total of three years.

     The distribution and management agreement provides for reciprocal
indemnification between us and the selling agent, including the selling agent's
and our officers, directors and controlling persons, against civil liabilities
in connection with this offering, including certain liabilities under the
Securities Act of 1933, as amended. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted pursuant to such
indemnification provisions, we have been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Securities Act and is therefore unenforceable.

     Prior to the offering, there has been no public market for the notes. We do
not intend to list the notes on any securities exchange or include them for
quotation on Nasdaq. The selling agent is not obligated to make a market in the
notes and does not intend to do so. We do not anticipate that a secondary market
for the notes will develop.

     The foregoing is a summary of the material provisions relating to selling
and distribution of the notes in the distribution and management agreement. The
provisions of the distribution and management agreement relating to our
retention of Sumner Harrington Ltd. to act as our servicing agent in performing
our ongoing administrative responsibilities for the notes are described under
"Description of the Notes." Any amendment to the distribution and management
agreement will be filed as an exhibit to an amendment to the registration
statement of which this prospectus is a part.


                INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

     The SEC allows us to "incorporate by reference" the information we file
with it, which means that we can disclose important information to you by
referring you to those documents. The information incorporated by reference into
this prospectus is an important part of this prospectus. Specifically, we are
incorporating by reference the documents listed below:

     o    Our Annual Report on Form 10-K for the year ended December 31, 2005.

     o    Our Current Reports on Form 8-K filed with the SEC on January 5,
          January 12, March 1, March 7, March 14, and April 4, 2006.

     o    All future reports that we file under Section 13(a), 13(c), 14 or
          15(d) of the Securities Exchange Act, prior to the termination of this
          offering.

     You should rely only on the information we include or incorporate by
reference in this prospectus and any applicable prospectus supplement. We have
not authorized anyone to provide you with information different from that
contained or incorporated by reference in this prospectus. The information
contained in this prospectus and any applicable prospectus supplement is
accurate only as of the date on the front of those documents, regardless of the
time of delivery of this prospectus or the applicable prospectus supplement or
of any sale of our securities.


                                       32


     Any statement contained in this prospectus or in a document incorporated by
reference in this prospectus is deemed to be modified or superseded for purposes
of this prospectus to the extent that any of the following modifies or
supersedes a statement in this prospectus or incorporated by reference in this
prospectus:

     o    in the case of a statement in a previously filed document incorporated
          by reference in this prospectus, a statement contained in this
          prospectus;

     o    a statement contained in any accompanying prospectus supplement
          relating to a specific offering of notes; or

     o    a statement contained in any other subsequently filed document that is
          also incorporated by reference in this prospectus.

     Any modified or superseded statement will not be deemed to constitute a
part of this prospectus or any accompanying prospectus supplement, except as
modified or superseded. Except as provided by the above mentioned exceptions,
all information appearing in this prospectus and each accompanying prospectus
supplement is qualified in its entirety by the information appearing in the
documents incorporated by reference.

     We will provide without charge to each person to whom a copy of this
prospectus is delivered, upon his or her written or oral request, a copy of any
or all of the documents incorporated in this prospectus by reference, other than
exhibits to the documents, unless the exhibits are incorporated specifically by
reference in the documents. Requests for copies should be directed to:

                        Consumer Portfolio Services, Inc.
                            16355 Laguna Canyon Road
                            Irvine, California 92618
                         Attention: Corporate Secretary
                                 (949) 753-6800


                       WHERE YOU CAN FIND MORE INFORMATION

     We file annual, quarterly and special reports, proxy statements and other
information with the SEC. You may read and copy any document we file at the
SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for further information on the operation
of the Public Reference Room. Our SEC filings are also available to the public
at the SEC's web site at http://www.sec.gov.

     We have also filed a registration statement on Form S-3 under the
Securities Act with the SEC with respect to the notes offered by this
prospectus. This prospectus has been filed as part of that registration
statement. This prospectus does not contain all of the information set forth in
the registration statement because parts of the registration statement are
omitted in accordance with the rules and regulations of the SEC. The
registration statement is available for inspection and copying as set forth
above.


                                  LEGAL MATTERS

     Certain legal matters in connection with the notes will be passed upon for
us by Andrews Kurth LLP, Dallas, Texas. Certain legal matters in connection with
the notes will be passed upon for Sumner Harrington Ltd. by Oppenheimer Wolff &
Donnelly LLP, Minneapolis, Minnesota.


                                     EXPERTS

     The consolidated financial statements of Consumer Portfolio Services, Inc.
as of and for the years ended December 31, 2004 and 2005 have been incorporated
by reference herein in reliance upon the report of McGladrey & Pullen LLP,
independent registered public accountants, incorporated by reference herein, and
upon the authority of said firm as experts in accounting and auditing.

     The consolidated financial statements of Consumer Portfolio Services, Inc.
for the year ended December 31, 2003, have been incorporated by reference herein
in reliance upon the report of KPMG LLP, independent registered public
accounting firm, incorporated by reference herein, and upon the authority of
said firm as experts in accounting and auditing.


                                       33


                                    GLOSSARY

     ASSET-BACKED SECURITIES -- Securities that are backed by financial assets,
such as automobile contracts and loans.

     CREDIT ENHANCEMENT -- Credit enhancement refers to a mechanism that is
intended to protect the holders of the asset-backed securities against losses
due to defaults by the obligors under the contracts.

     EXCESS SPREAD CASH FLOWS -- The difference between the cash collected from
contracts in a securitization or warehouse credit facility in any period and the
sum of (i) the interest and principal paid to investors on the indebtedness
issued in connection with the securitization or warehouse credit facility, (ii)
the costs of servicing the contracts and (iii) certain other costs incurred in
connection with completing and maintaining the securitization or warehousing.

     MOTOR VEHICLE CONTRACT -- A retail installment sales contract or
installment loan agreement secured by a new or used automobile, light-duty truck
or van.

     OVERCOLLATERALIZATION -- With respect to a securitization or warehouse
credit facility, the excess of (a) the aggregate principal balance of the
securitized or warehoused pool of motor vehicle contracts over (b) the aggregate
outstanding principal amount of the related indebtedness.

     SECURITIZATION OR SECURITIZED -- The process through which contracts and
other receivables are accumulated or pooled and sold to a trust which issues
securities representing interests in the trust to investors.

     SERVICING PORTFOLIO -- All of the motor vehicle contracts that we own and
that we have sold in securitizations and into our warehouse credit facilities
and service in connection with the Seawest securitizations and, in each case,
continue to service.

     SPECIAL PURPOSE ENTITIES -- Our subsidiaries that were formed for the
specific purpose of securitizing our motor vehicle contract receivables and
facilitating our warehouse, residual and other financing facilities.

     SPREAD ACCOUNT -- An account required by the credit enhancer of a
securitization or warehouse credit facility in order to protect the credit
enhancer against credit losses. Generally, excess spread cash flow from the pool
of contracts is credited to the account and retained until the account balance
reaches a set maximum balance. If the maximum balance set forth under the terms
of a particular securitization or warehouse credit facility is attained, the
excess spread cash flows and any surplus in the spread account are returned to
us, our residual lenders or the purchaser of a residual interest, as the case
may be. The maximum balance in a particular securitization may increase or
decrease over time, and also may never be attained in any particular
securitization or warehouse credit facility. Any remaining spread account
balance is released to us, our residual lenders or the purchaser of a residual
interest, as the case may be, upon termination of the securitization or
warehouse credit facility.

     WAREHOUSING -- A method in which contracts are financed by financial
institutions on a short-term basis. In a warehousing arrangement, which we also
refer to as a "warehouse credit facility", contracts are accumulated or pooled
on a daily or less frequent basis and assigned or pledged as collateral for
short-term borrowings until they are financed in a securitization.


                                       34


                                     PART II

                     INFORMATION NOT REQUIRED IN PROSPECTUS

ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

Set forth below are expenses (other than the selling agent's commissions and
expenses) expected to be incurred in connection with the issuance and
distribution of the securities registered hereby. With the exception of the
Securities and Exchange Commission registration fee and the NASD filing fee, the
amounts set forth below are estimates and actual expenses may vary considerably
from these estimates depending upon how long the notes are offered and other
factors:


   Securities and Exchange Commission registration fee     $    11,770
   NASD filing fee                                               3,500
   Accounting fees and expenses                                 65,000
   Blue Sky fees and expenses                                    1,000
   Legal fees and expenses                                      60,000
   Printing expenses                                            90,000
   Trustee's fees and expenses                                  20,000
   Selling agent's counsel fees                                 80,000
   Miscellaneous                                                75,000
                                                           -----------
       TOTAL                                               $   406,270
                                                           ===========



ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS

Under California law, a California corporation may eliminate or limit the
personal liability of a director of the corporation for monetary damages for
breach of the director's duty of care as a director, provided that the breach
does not involve certain enumerated actions, including, among other things,
intentional misconduct or knowing and culpable violation of the law, acts or
omissions which the director believes to be contrary to the best interests of
the corporation or its shareholders or which reflect an absence of good faith on
the director's part, the unlawful purchase or redemption of stock, payment of
unlawful dividends, and receipt of improper personal benefits. The registrant's
Board of Directors believes that such provisions have become commonplace among
major corporations and are beneficial in attracting and retaining qualified
directors, and the registrant's Articles of Incorporation include such
provisions.

The registrant's Articles of Incorporation and Bylaws also impose a mandatory
obligation upon the registrant to indemnify any director or officer to the
fullest extent authorized or permitted by law (as now or hereinafter in effect),
including under circumstances in which indemnification would otherwise be at the
discretion of the registrant.

Under Section 7.02 of the Distribution and Management Agreement filed as Exhibit
1.1 to this Registration Statement, the selling agent has agreed to indemnify,
under certain conditions, CPS, its officers and directors, and persons who
control CPS within the meaning of the Securities Act of 1933, as amended,
against certain liabilities.


                                      II-1


ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

     (a)  Exhibits

       EXHIBIT NO.                         DESCRIPTION
       -----------  ------------------------------------------------------------
          *1.1      Form of Distribution and Management Agreement (Previously
                    filed as Exhibit 1.1 to Amendment No. 1 to Registration
                    Statement No. 333-121913)

          *4.1      Indenture (Previously filed as Exhibit 4.1 to Registration
                    Statement No. 333-121913)

          *4.2      Form of Notes (Previously filed as Exhibit 24.1 to
                    Registration Statement No. 333-121913)

          *4.3      Form of Note Confirmation (Previously filed as Exhibit 4.3
                    to Amendment No. 1 to Registration Statement No. 333-121913)

          *4.4      Form of Subscription Agreement (Previously filed as Exhibit
                    4.4 to Amendment No. 1 to Registration Statement No.
                    333-121913)

          *5.1      Opinion of Andrews Kurth LLP with respect to legality of
                    Notes (Previously filed as Exhibit 5.1 to Amendment No. 1 to
                    Registration Statement No. 333-121913)

          *8.1      Opinion of Andrews Kurth LLP with respect to tax matters
                    (Previously filed as Exhibit 8.1 to Amendment No. 1 to
                    Registration Statement No. 333-121913)

          **12.1    Statement re Computation of Ratios

          *23.1     Consent of Andrews Kurth LLP (included in Exhibits 5.1 and
                    8.1)

          **23.2    Consent of McGladrey & Pullen LLP

          **23.3    Consent of KPMG LLP

          *24.1     Power of Attorney (Previously filed as Exhibit 24.1 to
                    Registration Statement No. 333-121913)

          *25.1     Statement of Eligibility of Trustee (Previously filed as
                    Exhibit 25.1 to Registration Statement No. 333-121913)

------------------
*    Previously filed with this registration statement, or incorporated by
     reference to the specified filing.
**   Filed herewith.


                                      II-2


ITEM 17. UNDERTAKINGS

Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the "Securities Act") may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Securities Act, and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.

1. The undersigned registrant hereby undertakes:

          (a) To file, during any period in which offers or sales are being
     made, a post-effective amendment to this registration statement:

               (i) to include any prospectus required by Section 10(a)(3) of the
          Securities Act;

               (ii) to reflect in the prospectus any facts or events arising
          after the effective date of the registration statement (or the most
          recent post-effective amendment thereof) which, individually or in the
          aggregate, represent a fundamental change in the information set forth
          in the registration statement. Notwithstanding the foregoing, any
          increase or decrease in volume of securities offered (if the total
          dollar value of securities offered would not exceed that which was
          registered) and any deviation from the low or high end of the
          estimated maximum offering range may be reflected in the form of
          prospectus filed with the Commission pursuant to Rule 424(b) if, in
          the aggregate, the changes in volume and price represent no more than
          a 20% change in the maximum aggregate offering price set forth in the
          "Calculation of Registration Fee" table in the effective registration
          statement; and

               (iii) to include any material information with respect to the
          plan of distribution not previously disclosed in the registration
          statement or any material change to such information in the
          registration statement;

PROVIDED, HOWEVER, that paragraphs 1(a)(i), (1)(a)(ii) and 1(a)(iii) of this
section do not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in the periodic
reports filed with or furnished to the Commission by the registrant pursuant to
section 13 or section 15(d) of the Securities Exchange Act of 1934 (the
"Exchange Act") that are incorporated by reference in the registration
statement, or is contained in a form of prospectus filed pursuant to Rule 424(b)
that is part of the registration statement;

          (b) that, for the purpose of determining any liability under the
     Securities Act, each such post-effective amendment shall be deemed to be a
     new registration statement relating to the securities offered therein, and
     the offering of such securities at that time shall be deemed to be the
     initial bona fide offering thereof;

          (c) to remove from registration by means of a post-effective amendment
     any of the securities being registered which remain unsold at the
     termination of the offering;

          (d) that, for the purpose of determining liability under the
     Securities Act to any purchaser:

               (i) each prospectus filed by the registrant pursuant to Rule
          424(b)(3) shall be deemed to be part of the registration statement as
          of the date the filed prospectus was deemed part of and included in
          the registration statement; and

               (ii) each prospectus required to be filed pursuant to Rule
          424(b)(2), (b)(5) or (b)(7) as part of a registration statement in
          reliance on Rule 430B relating to an offering made pursuant to Rule
          415(a)(1)(i), (vii) or (x) for the purpose of providing the
          information required by section 10(a) of the Securities Act shall be


                                      II-3


          deemed to be part of and included in the registration statement as of
          the earlier of the date such form of prospectus is first used after
          effectiveness or the date of the first contract of sale of securities
          in the offering described in the prospectus. As provided in Rule 430B,
          for liability purposes of the issuer and any person that is at that
          date an underwriter, such date shall be deemed to be a new effective
          date of the registration statement relating to the securities in the
          registration statement to which that prospectus relates, and the
          offering of such securities at that time shall be deemed to be the
          initial bona fide offering thereof. Provided, however, that no
          statement made in a registration statement or prospectus that is part
          of the registration statement or made in a document incorporated or
          deemed incorporated by reference into the registration statement or
          prospectus that is part of the registration statement will, as to a
          purchaser with a time of contract of sale prior to such effective
          date, supersede or modify any statement that was made in the
          registration statement or prospectus that was part of the registration
          statement or made in any such document immediately prior to such
          effective date;

          (e) that, for the purpose of determining liability of the registrant
     under the Securities Act to any purchaser in the initial distribution of
     the securities, the undersigned registrant undertakes that in a primary
     offering of securities of the undersigned registrant pursuant to this
     registration statement, regardless of the underwriting method used to sell
     the securities to the purchaser, if the securities are offered or sold to
     such purchaser by means of any of the following communications, the
     undersigned registrant will be a seller to the purchaser and will be
     considered to offer or sell such securities to such purchaser:

               (i) any preliminary prospectus or prospectus of the undersigned
          registrant relating to the offering required to be filed pursuant to
          Rule 424;

               (ii) any free writing prospectus relating to the offering
          prepared by or on behalf of the undersigned registrant or used or
          referred to by the undersigned registrant;

               (iii) the portion of any other free writing prospectus relating
          to the offering containing material information about the undersigned
          registrant or its securities provided by or on behalf of the
          undersigned registrant; and

               (iv) any other communication that is an offer in the offering
          made by the undersigned registrant to the purchaser;

          (f) that, for purposes of determining any liability under the
     Securities Act, the undersigned registrant undertakes that each filing of
     an annual report of the undersigned registrant pursuant to section 13(a) or
     section 15(d) of the Exchange Act (and, where applicable, each filing of an
     employee benefit plan's annual report pursuant to section 15(d) of the
     Exchange Act) that is incorporated by reference in this registration
     statement shall be deemed to be a new registration statement relating to
     the securities offered herein, and the offering of such securities at that
     time shall be deemed to be the initial bona fide offering thereof.

          (g) Insofar as indemnification for liabilities arising under the
     Securities Act of 1933 may be permitted to directors, officers and
     controlling persons of the registrant pursuant to the provisions described
     under Item 15 above, or otherwise, the registrant has been advised that in
     the opinion of the Securities and Exchange Commission such indemnification
     is against public policy as expressed in the Securities Act of 1933 and is,
     therefore, unenforceable. In the event that a claim for indemnification
     against such liabilities (other than the payment by the registrant of
     expenses incurred or paid by a director, officer or controlling person of
     the registrant in the successful defense of any action, suit or proceeding)
     is asserted by such director, officer or controlling person in connection
     with the securities being registered, the registrant will, unless in the
     opinion of its counsel the matter has been settled by controlling
     precedent, submit to a court of appropriate jurisdiction the question
     whether such indemnification by it is against public policy as expressed in
     the Securities Act of 1933 and will be governed by the final adjudication
     of such issue.

          (h) For purposes of determining any liability under the Securities Act
     of 1933, each post-effective amendment that contains a form of prospectus
     shall be deemed to be a new registration statement relating to the
     securities offered therein, and the offering of such securities at that
     time shall be deemed to be the initial bona fide offering thereof.


                                      II-4


                                   SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Post-Effective
Amendment No. 2 to Registration Statement on Form S-3 to be signed on its behalf
by the undersigned, thereunto duly authorized, in Irvine, State of California,
on April 10, 2006.

                               CONSUMER PORTFOLIO SERVICES, INC.

                               By:  /s/ CHARLES E. BRADLEY, JR.
                                    ---------------------------------
                                    Charles E. Bradley, Jr.
                                    President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933, as amended, this
Post-Effective Amendment No. 2 to Registration Statement on Form S-3 has been
signed by the following persons in the capacities and on the dates indicated
below.

         SIGNATURE                         TITLE                       DATE

/s/ CHARLES E. BRADLEY, JR.                                       April 10, 2006
Charles E. Bradley, Jr.      Chairman of the Board of Directors,
                             President, and Chief Executive
                             Officer
                             (Principal Executive Officer)

/s/ ROBERT E. RIEDL                                               April 10, 2006
Robert E. Riedl              Chief Financial Officer
                             (Principal Financial Officer)

/s/ E. BRUCE FREDRIKSON                                           April 10, 2006
E. Bruce Fredrikson          Director

/s/ JOHN E. MCCONNAUGHY                                           April 10, 2006
John E. McConnaughy          Director

/s/ JOHN G. POOLE                                                 April 10, 2006
John G. Poole                Director

/s/ WILLIAM B. ROBERTS                                            April 10, 2006
William B. Roberts           Director

/s/ JOHN C. WARNER                                                April 10, 2006
John C. Warner               Director

/s/ DANIEL S. WOOD                                                April 10, 2006
Daniel S. Wood               Director

/s/ JEFFREY P. FRITZ                                              April 10, 2006
Jeffrey P. Fritz             Sr. Vice President (Principal
                             Accounting Officer)



                                  EXHIBIT INDEX


    EXHIBIT NO.                            DESCRIPTION
------------------  ------------------------------------------------------------
12.1                Statement re Computation of Ratios

23.2                Consent of McGladrey & Pullen LLP

23.3                Consent of KPMG LLP