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Driver China Six: 22 May 2017

The sixth securitisation of Chinese auto loans from originator VWFC, where the Purchased Loan Receivables arise from (a) the Financed Objects primarily originated by natural person and institutional customers of Volkswagen, Audi, SEAT, Skoda and Porsche vehicles, and vehicles of certain other brands financed by the VWFC under the Loan Contracts and (b) the Loan Contracts which provide for repayment of the loan (i) by fixed monthly instalments or (ii) with monthly instalments and a final balloon instalment.

Warranties and Guarantees for the Purchased Loan Receivables (include): all Financed Objects are insured with the VWFC named as the first loss payee during the first year of the term of the relevant loan; all Contracts constitute legal, valid, binding and enforceable agreements; the Purchased Loan Receivables are assignable; no Purchased Loan Receivable is overdue; none of the Borrowers is an affiliate of Volkswagen AG or an employee of the VWFC; the Loan Contracts have been entered into exclusively with the Borrowers which, if they are corporate entities, have their registered office in China or, if they are individuals, have their place of residence in China; the Purchased Loan Receivables are denominated in RMB.

As of the cut-off date, the pool consists of 84,013 fixed-rate contracts advanced to 82,911 borrowers, where the average outstanding aggregate discounted principal balance is RMB53,563. The WA down-payment percentage is 43.77% and the WA borrower age is 35.30 years. The WA LTV is 56.23% and the WA seasoning is 8.34 months. Customer Type (by current balances): Individual 96.16%, Corporate 3.79%. Type of Payment (by current balances): Direct Debit 99.99%. Guaranteed Loan: yes 33.58%, no 66.42%. Type of Credit: Classic Credit 98.07%.

CRR/405: The Senior Notes under this securitisation will be publicly offered in the National Interbank Bond Market and all of the Subordinated Notes will be retained by the Originator. The amount of the Subordinated Notes is 7.99% of the total amount of the securitisation project. Such risk retention arrangement is in line with the relevant provisions under the Public Announcement of PBOC and CBRC (2013 No. 21).

Compare/contrast: Driver China Five