<PAGE>
CONSUMER PORTFOLIO SERVICES, INC.
SUPPLEMENT DATED SEPTEMBER 27, 1996
TO PROSPECTUS DATED APRIL 11, 1994
The following shall replace the second paragraph under the section of the
Prospectus entitled "Selling Securityholders and Plan of Distribution" and the
table and the footnotes following such paragraph:
The following sets forth certain information with respect to the Selling
Securityholders. Such information gives effect to the 2-for-1 stock split of the
Company's Common Stock effected in March 1996. The Company will not receive any
of the proceeds from the sale of shares by the Selling Securityholders.
<TABLE>
<CAPTION>
Beneficial Ownership of Shares of Beneficial Ownership of Shares of
Selling Securityholders Common Stock prior to Sale(1) Common Stock after to Sale (1)(2)
- ----------------------- ----------------------------- ---------------------------------
<S> <C> <C>
Whale Securities Co., L.P. 14,000 0
Elliot J. Smith 40,306(3) 15,880
Mathew A. Gohd 71,000 0
</TABLE>
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(1) Assumes that all Warrants have been exercised.
(2) Assumes that all of the Selling Securityholder's shares of Common Stock are
sold by the Selling Securityholder and no additional shares are acquired.
(3) Represents outstanding shares of Common stock, including 24,426 shares
issued upon the exercise of Warrants prior to the date hereof.
