EX-99.1 2 cps_8k-ex9901.htm INVESTOR PRESENTATION AS OF DECEMBER 31, 2015

Exhibit 99.1

Investor Presentation As of December 31, 2015

2 » Consumer finance company focused on sub - prime auto market » Established in 1991. IPO in 1992 » Through December 31, 2015, over $12.4 billion in contracts purchased from automobile dealers » From 2002 – 2011, four mergers and acquisitions aggregating $822.3 million » Irvine, California operating headquarters; Branches in Nevada, Illinois, Virginia and Florida » Approximately 950 employees » $1,060.5 million contract purchases in 2015; $944.9 million in 2014 » $2.0 billion outstanding managed portfolio at December 31, 2015

3 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Total Managed Portfolio ($ in mm) $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 Pretax Income ($ in mm ) $50 $100 $150 $200 $250 $300 New Contract Purchases ($ in mm) (1) Equal to annualized pretax income as a percentage of the average managed portfolio. 0.0% 1.0% 2.0% 3.0% 4.0% Return on Managed Assets (1)

4 CPS Systems Proprietary Applications Credit Decisioning AOA / DOA Underwriting Servicing and Collections System Auto Dialer –Workflow Management Receivables Accounting System Credit Application Servicing Activities –Five Branch Locations Decline or Approval / Pricing Credit Bureaus Underwriting Package Originations System Automobile Dealership Auto Consumers Shop -- Negotiate -- Apply for Credit

5 » Improvements in operating leverage offsetting lower contract APRs resulting in steady returns on managed portfolio. (1) As a percentage of the average managed portfolio. Percentages may not add due to rounding. December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Interest Income 18.4% 19.9% 18.9% 20.2% Servicing and Other Income 0.6% 1.0% 0.7% 1.0% Interest Expense (3.2%) (3.2%) (3.1%) (3.5%) Net Interest Margin 15.8% 17.6% 16.6% 17.6% Provision for Credit Losses (7.2%) (7.8%) (7.7%) (7.6%) Core Operating Expenses (5.5%) (6.2%) (5.5%) (6.3%) Pretax Return on Assets 3.2% 3.6% 3.3% 3.7% Quarter Ended Twelve Months Ended

U.S. Auto Finance Market $1 trillion in auto loans outstanding as of Q4 2015 (2) Approximately 39% is below “prime” (credit score less than 660) (1) Approximately $140 billion in new subprime auto loans in 2015 (2) Historically fragmented market – top 20 players represent 49% of outstandings (1) Few dominant long - term players Significant barriers to entry Other National Industry Players Santander Consumer USA GM Financial/AmeriCredit Capital One Chase Custom Wells Fargo Westlake Financial Credit Acceptance Corp. Exeter Finance Corp. 6 (1) According to Experian Automotive. (2) According to Equifax

» Purchasing contracts from dealers in 48 states across the U.S. » As of December 31, 2015 had 109 employee marketing representatives » Primarily factory franchised dealers 7 (1) Under the CPS programs for contracts purchased during 2015. 72% 28% Contract Purchases (1) Factory Franchised Independents

$284 $691 $1,019 $1,283 $297 $9 $113 $552 $764 $945 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 ($ in millions) $1,061 8 » Since inception through December 31, 2015 the Company has purchased over $12.4 billion in contracts » New contract purchases have ramped up significantly since financial crisis

$0 $500 $1,000 $1,500 $2,000 $2,500 ($ in millions) $2,031 $1,566 $2,156 $1,664 $1,195 $756 $795 $898 $1,231 $1,644 9 » Decline through 2010 was the result of the financial crisis

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Model Year 10 • 28% New • 72% Pre - owned • 40% Domestic • 60% Imports Primarily late model, pre - owned vehicles (1) Under the CPS programs for contracts purchased during 2015.

11 » CPS’s proprietary scoring models and risk - adjusted pricing result in program offerings covering a wide band of the credit spectrum (1) Under the CPS programs for contracts purchased during 2015. (2) Contract APR as adjusted for fees charged (or paid) to dealer. Program (1) Avg. Yield (2) Avg. Amount Financed Avg. Annual Household Income Avg. Time on Job (years) Avg. FICO % of Purchases Preferred 12.9% $19,172 $86,978 9.2 600 4% Super Alpha 15.2% $19,731 $73,502 8.0 578 11% Alpha Plus 17.8% $18,262 $61,848 6.9 569 16% Alpha 19.9% $16,950 $51,024 5.6 564 46% Standard 23.3% $14,003 $47,566 4.0 564 10% Mercury / Delta 23.7% $13,557 $44,911 4.0 555 9% First Time Buyer 23.4% $12,507 $38,723 2.9 574 4% Overall 19.5% $16,537 $54,340 5.6 567 100%

12 » Yields and credit metrics are stronger today than at the end of the last cycle (1) (1) For new contracts purchased during the calendar quarter under the CPS programs. Averages are weighted by principal balance. (2) Contract APR as adjusted for fees charged (or paid) to dealer . (3) Wholesale loan - to - value ratio. Q4 2007 Q4 2008 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 New Contract Purchases ($ in mm) $258.0 $7.3 $33.6 $92.2 $150.8 $173.4 $264.4 $269.2 Avg. Yield (2) 18.8% 23.8% 24.3% 23.3% 22.5% 21.0% 20.3% 19.8% Avg. FICO 523 527 569 561 562 563 566 566 Avg. Original Term (months) 64 63 63 63 62 63 64 67 Avg. LTV (3) 115.1% 113.2% 115.3% 115.2% 115.7% 114.2% 115.2% 115.3%

• Average age 42 years • Average time in job 6 years • Average time in residence 7 years • Average credit history 12 years • Average household income $54,340 per year • Percentage of homeowners 25% Borrower : • Average amount financed $16,537 • Weighted average monthly payment $476 • Weighted average term 67 months • Weighted average APR 19.1% • Weighted average LTV 115.0 % Contract: 13 (1) Under the CPS programs for contracts purchased during 2015.

Contract Originations » Centralized contract originations at Irvine HQ » Maximizes control and efficiencies » Certain functions performed at Florida and Nevada offices » Proprietary auto - decisioning system » Makes initial credit decision on over 99% of incoming applications » Uses both criteria and proprietary scorecards in credit and pricing decisions » Pre - funding verification of employment, income and residency » Protects against potential fraud 14 Servicing » Geographically dispersed servicing centers enhance coverage and staffing flexibility and drive portfolio performance » Early contact on past due accounts; commencing as early as first day after due date » Early stage workload supplemented by automated intelligent predictive dialer » Workloads allocated based on specialization and behavioral scorecards, which enhances efficiencies

» $300 million in interim funding capacity through three c redit facilities » $100 million with Fortress; revolves to April 2017, due in April 2019 » $100 million with Citibank; revolves to August 2016, due in August 2017 » $100 million with Ares / Credit - Suisse; revolves to November 2017, due in November 2019 » Regular issuer of asset - backed securities, providing long - term matched funding » $10.2 billion in over 68 deals from 1994 through December 2015. » Completed 18 senior subordinated securitizations since the beginning of 2011 » In January 2016 transaction, sold five tranches of rated bonds from triple “A” down to double “B” with a blended coupon of 4.12% » $9.0 million in residual interest financing, maturing in April 2018 » Total corporate debt of $15.1 million in subordinated unsecured retail notes 15

16 » Average of quarterly vintage cumulative net losses as of December 31, 2015 » Recent pool performance in line with business model economics 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 2006 2007 2010 2011 2012 2013 2014 2015

($ in millions) December 31, 2015 December 31, 2014 December 31, 2013 December 31, 2012 Assets Cash 19.3$ 17.9$ 22.1$ 13.0$ Restricted cash 106.0 175.4 132.3 104.4 Finance receivables, net of allowance 1,909.5 1,534.5 1,115.4 744.8 Finance receivables, measured at fair value - 1.7 14.5 59.7 Residual interest in securitizations - - 0.9 4.8 Deferred tax assets, net 37.6 42.9 59.2 75.6 Other assets 70.5 60.7 52.0 35.3 2,142.9$ 1,833.1$ 1,396.4$ 1,037.6$ Liabilities Accounts payable and accrued expenses 29.5$ 21.7$ 24.8$ 17.8$ Warehouse lines of credit 196.5 56.8 9.5 21.7 Debt secured by receivables measured at fair value - 1.3 13.1 57.1 Residual interest financing 9.0 12.3 19.1 13.8 Securitization trust debt 1,731.6 1,598.5 1,177.6 792.5 Senior secured debt, related party - - 38.6 50.1 Subordinated renewable notes 15.1 15.2 19.1 23.3 1,981.7 1,705.8 1,301.8 976.3 Shareholders' equity 161.2 127.3 94.6 61.3 2,142.9$ 1,833.1$ 1,396.4$ 1,037.6$ 17 (1) Numbers may not add due to rounding.

18 ($ in millions) December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2013 Revenues . . . Interest income 92.1$ 79.6$ 350.0$ 286.7$ 231.3$ Servicing fees - 0.2 0.3 1.4 3.1 Other income 3.2 3.6 13.4 12.1 10.4 Gain on cancellation of debt - - - 11.0 95.3 83.4 363.7 300.2 255.8 Expenses Employee costs 16.7 14.7 59.6 50.1 43.0 General and administrative 10.7 10.2 42.4 39.3 32.7 Interest 16.0 12.8 57.7 50.4 58.2 Provision for credit losses 36.1 31.4 142.6 108.2 76.9 Provision for contingent liabilities - - - - 7.8 79.5 69.1 302.3 248.0 218.6 Pretax income 15.8 14.3 61.4 52.2 37.2 Income tax expense (gain) 6.8 6.3 26.7 22.7 16.2 Net income 9.0$ 8.0$ 34.7$ 29.5$ 21.0$ EPS (fully diluted) 0.29$ 0.25$ 1.10$ 0.92$ 0.67$ Years EndedThree Months Ended (1) Numbers may not add due to rounding.

19 (1) Revenues less interest expense and provision for credit losses. (2) Total expenses less provision for credit losses and interest expense. (3) Equal to annualized pretax income as a percentage of the average managed portfolio. ($ in millions) December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31, 2013 Auto contract purchases 269.2$ 264.4$ 1,060.5$ 944.9$ 764.1$ Total managed portfolio 2,031.1$ 1,643.9$ 2,031.1$ 1,643.9$ 1,231.4$ Risk-adjusted margin (1) 43.2$ 39.2$ 163.3$ 141.6$ 109.8$ Core operating expenses (2) $ amount 27.4$ 24.9$ 101.9$ 89.4$ 75.7$ % of avg. managed portfolio 5.5% 6.2% 5.5% 6.3% 7.0% Pretax return on managed assets (3) 3.2% 3.6% 3.3% 3.7% 3.4% Total delinquencies and repo inventory (30+ days past due) As a % of total owned portfolio 9.5% 7.2% 9.5% 7.2% 6.9% Annualized net charge-offs As a % of total owned portfolio 6.2% 6.4% 6.4% 5.8% 4.7% Three Months Ended Years Ended

» CPS has weathered two industry cycles to remain one of the few independent public auto finance companies » Sixteen consecutive quarters of improving profitability » Attractive industry fundamentals with fewer large competitors than last cycle » Consistent credit performance 20 » Growing portfolio enhances operating leverage through economies of scale » Opportunistic, successful acquisitions » Stable senior management team averaging 19 years of experience owns significant equity » CPSS currently trading at a discount to book value

-Any person considering an investment in securities issued by CPS is urged to review the materials filed by CPS with the U . S . Securities and Exchange Commission ("Commission") . Such materials may be found by inquiring of the Commission‘s EDGAR search page (http : //www . sec . gov/edgar/searchedgar/companysearch . html) using CPS's ticker symbol, which is "CPSS . " Risk factors that should be considered are described in Item 1 A, “Risk Factors," of CPS's annual report on Form 10 - K, which report is on file with the Commission and available for review at the Commission's website . Such description of risk factors is incorporated herein by reference . 21

- Information included in the preceding slides is believed to be accurate, but is not necessarily complete . Such information should be reviewed in its appropriate context . The implication that historical trends will continue in the future, or that past performance is indicative of future results, is disclaimed . To the extent that one reading the preceding material nevertheless makes such an inference, such inference would be a forward - looking statement, and would be subject to risks and uncertainties that could cause actual results to vary . Such risks include variable economic conditions, adverse portfolio performance (resulting, for example, from increased defaults by the underlying obligors), volatile wholesale values of collateral underlying CPS assets, reliance on warehouse financing and on the capital markets, fluctuating interest rates, increased competition, regulatory changes, the risk of obligor default inherent in sub - prime financing, and exposure to litigation . 22