<PAGE>
SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street, N.W.
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report: November 15, 1997
Volkswagen Credit Auto Receivables Corporation
-----------------------------------------------
(Exact Name of Registrant as Specified in Charter)
EXHIBITS
Delaware 33-80055 38-2748796
-------- -------- ----------
(State of incorporation) (Commission File) (IRS Employer
Number) Identification No.)
3800 Hamlin Road, Auburn Hills, Michigan 48326
----------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (248) 340-4938
N/A
- -------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events
The Monthly Servicing Report relating to the Volkswagen Credit Auto
Master Trust, Series 1996-1 for the Collection Period ended November 15, 1997,
provided to Citibank, N.A., as trustee is attached hereto as Exhibit 20 and is
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Designation Description Method of Filing
----------- ----------- ----------------
Exhibit 20 Report for the month ended Filed with this report
November 15, 1997 provided to
Chemical Bank, as trustee
under the Volkswagen
Credit Auto Master Trust,
Series 1996-1
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Volkswagen Credit Auto Master Trust
By: Volkswagen Credit Auto
Receivables Corporation
By: /s/ Allen L. Strang
----------------------------
Allen L. Strang
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<TABLE>
<CAPTION>
VOLKSWAGEN CREDIT AUTO MASTER TRUST 1996-1
- -------------------------------------------------------------------------------
Distribution Date Statement: November 17, 1997
<S> <C>
a. Aggregate Amount of Collections $227,098,292.82
Aggregate Amount of Interest $3,423,126.78
Collections
Aggregate Amount of Principal $223,675,166.04
Collections
Investment Proceeds $0.00
b. Series Allocation Percentage 100.00%
Floating Allocation Percentage 101.99%
Fixed Allocation Percentage N/A
c. Total Amount Distributed on $1,988,593.75
Series 1996-1
d. Amount of Such Distribution $0.00
Allocable to Principal on 1996-1
e. Amount of Such Distribution $1,988,593.75
Allocable to Interest on 1996-1
f. Investor Default Amount $0.00
g. Draw Amount $0.00
h. Investor Charge Offs $0.00
Amounts of Reimbursements $0.00
i. Monthly Servicing Fee 1.00%
j. Expected Controlled $0.00
Distribution Amount
k. Invested Amount $308,988,020.20
l. Pool Factor 83.46%
m. Available Subordinated Amount $56,261,098.66
n. Reserve Fund Balance $1,875,000.00
o. Principal Funding Account $0.00
Balance
Yield Supplement Account Balance $1,875,000.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VW CREDIT, INC. -- SERVICER PAGE 1
20-NOV-97
VOLKSWAGEN CREDIT AUTO MASTER TRUST, SERIES 1996-1
MONTHLY SERVICER REPORT INPUT AND SUMMARY PAGE
----------------------------------------------
TRANSACTION SUMMARY PORTFOLIO CHARGE OFF RATE AT COLLECTION PERIOD END
- ------------------- -------------------------------------------------
From To Days
----- -- ----
<S> <C> <C> <C> <C> <C>
Current Interest Period 10/15/97 11/16/97 33 Net losses as a % of Avg. Receivables Balance 0.00%
(annualized)
Series Allocation 100.00% PORTFOLIO AND DEALERSHIP STATISTICS
Percentage -----------------------------------
Initial Principal Balance $375,000,000.00 Used Vehicle Receivables' Balance $ 40,850,107.61
Outstanding Principal $375,000,000.00 Used Vehicle Percentage 10.818%
Balance
Principal Balance of $420,379,258.08 Used Vehicle Percentage During Last Collection 10.459%
Receivables for Period
Determination Date
Amount Invested in $375,000,000.00 Early Amortization Event? NO
Receivables on Series
Issuance Date
Initial Invested Amount $370,201,941.66 Largest Dealer or Dealer Affiliation Balance $ 19,400,705.51
Invested Amount at the $375,000,000.00 Largest Dealer Percentage 5.276%
Beginning of Period
Invested Amount $308,988,020.20
Required Subordinated $ 56,261,098.66 Aggregate Principal Amount of Receivables of $ 12,960,127.27
Amount Dealers over 2%
Excess Funded Amount $ 66,011,979.80 Aggregate % Principal Amount of Receivables of 3.432%
Dealers over 2%
Available Subordinated $ 74,673,840.98 SUMMARY OF COLLECTIONS
Amount (previous period) ----------------------
Incremental Subordinated $ 14,555,161.62
Amount (previous period)
Aggregate Amount of Collections $227,098,292.82
RESERVE FUND AND YIELD Aggregate Amount of Interest Collections $ 3,423,126.78
SUPPLEMENT ACCOUNT
- ----------------------
Investment Proceeds $ 0.00
Yield Supplement Account $ 1,875,000.00 Aggregate Amount of Principal Collections $223,675,166.04
Initial Deposit
Yield Supplement Account $ 1,875,000.00 Asset Receivables Rate 7.908%
Beginning Balance
Yield Supplement Account $ 1,875,000.00 Use Asset Receivables Rate? NO
Required Amount
Carryover Amount (this Distribution Date) N/A
Reserve Fund Initial $ 1,875,000.00 Total Carryover Amount N/A
Deposit
Reserve Fund Required $ 1,875,000.00
Amount
Reserve Fund Beginning $ 1,875,000.00 PAYMENT RATE INFORMATION
Balance ------------------------
Outstanding Carryover $ 0.00 Monthly Payment Rate 60.02%
Amount - Beginning Balance
Yield Supplement Account $ 0.00 Previous Collection Period Monthly Payment Rate 61.47%
Draw Amount
Outstanding Carryover $ 0.00 Monthly Payment Rate 3 months ago 55.08%
Amount - Ending Balance
Yield Supplement Account $ 1,875,000.00 3-month Average Payment Rate 58.86%
Balance - Ending Balance
Yield Supplement Account $ 0.00 12-month Minimum Payment Rate 55.08%
Required Deposit Amount
Early Amortization Event? NO
Reserve Fund Draw Amount $ 0.00
Reserve Fund Ending Balance $ 1,875,000.00 ACCUMULATION PERIOD/EARLY AMORTIZATION PERIOD
---------------------------------------------
Reserve Fund Required $ 0.00
Deposit Amount
Extend Revolving Period? YES
1-month LIBOR Rate 5.6250000% Last Day of Revolving Period N/A
(annualized)
Certificate Coupon 5.7850000% Invested Amount as of Last Day of Revolving N/A
(annualized) Period
Prime Rate (annualized) 8.5000000% Accumulation Period Length (months) N/A
Servicing Fee Rate 1.000% First Accumulation Date TO BE DETERMINED
(annualized)
Excess Spread 2.0150000% Expected Final Payment Date N/A
Required Participation Percentage 4.00%
TRUST PRINCIPAL RECEIVABLES Principal Funding Account Balance $ 0.00
- ---------------------------
Principal Payment Amount $ 0.00
Pool Balance at the $367,685,952.48 Controlled Deposit Amount $ 0.00
Beginning of Period
Pool Balance at the Ending $377,608,639.67
of Period
Average Aggregate $372,647,296.08 TOTAL AMOUNT DISTRIBUTED ON SERIES 1996-1
Principal Balance -----------------------------------------
Aggregate Principal $223,675,166.04 CERTIFICATEHOLDERS
Collections ------------------
New Principal Receivables $233,597,853.23 i. Monthly Interest Distribution $ 1,988,593.75
Receivables Added for $ 0.00 ii. Monthly Servicing Fee Distribution $ 257,490.02
Additional Accounts
Investor Default Amount $ 0.00 iii. Reserve Fund Deposit Amount Distribution $ 0.00
Net Losses $ 0.00 iv. Investor Default Amount Distribution $ 0.00
Monthly Interest Accrued, $ 0.00 v. Outstanding Carryover Amount Distribution $ 0.00
but not Paid
Ineligible Receivables $ 0.00 vi. Yield Supplement Account Deposit Amount $ 0.00
Distribution ---------------
Ineligible Receivables in $ 0.00 Excess Servicing $ 1,245,136.21
Prior Collection Period
Defaulted Receivables in $ 0.00
Ineligible and Overconc.
Accounts
Excess Servicing (Previous Period) $ 847,010.39
MISCELLANEOUS DATA
- ------------------
DEFICIENCY AMOUNT
-----------------
Recoveries on Receivables $ 0.00
Written Off
Spread Over Prime for 0.30% Deficiency Amount $ 0.0
Portfolio
Weighted Average Interest 8.80% Draw Amount $ 0.0
Rate
</TABLE>
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Page 2
VW CREDIT, INC. -- SERVICER
20-NOV-97
VOLKSWAGEN CREDIT AUTO MASTER TRUST, SERIES 1996-1
Summary
-------
Collections Accrual Distribution
----------- ------- ------------
From: 15-Oct-97
To: 16-Nov-97
Days: 32
LIBOR RATE 5.6250000%
(1 month)
SERIES # 1 Active
VCI RATING: N/A
<TABLE>
<CAPTION>
TRUST AND SERIES ALLOCATIONS - BEGINNING OF PERIOD
--------------------------------------------------
SERIES EXCESS REQUIRED REQUIRED OUTSTANDING
SERIES SERIES ALLOCATION INVESTED SUBORDINATED FUNDED PARTICIPATION PARTICIPATION CERTIFICATE
NUMBER NAME PERCENTAGE AMOUNT AMOUNT AMOUNT PERCENTAGE AMOUNT BALANCE
- ------ ---- ---------- ------ ------- ------ ----------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Trust $308,988,020.20 $56,261,098.66 $66,011,979.80 N/A $12,359,520.81
1 Series 1996-1 100.00% $308,988,020.20 $56,261,098.66 $66,011,979.80 4.00% $12,359,520.81 $375,000,000.00
</TABLE>
<PAGE>
PAGE 3
<TABLE>
<CAPTION>
VW CREDIT, INC. -- SERVICER
20-NOV-97
VOLKSWAGEN CREDIT AUTO MASTER TRUST, SERIES 1996-1
SERVICING CERTIFICATE
---------------------
INITIAL AMOUNTS EXCESS SPREAD CALCULATION
- --------------- -------------------------
<S> <C> <C> <C> <C>
Initial Invested Amount $370,201,941.66 Weighted Average Rate Charged to 8.80%
Dealers
Invested Amount $308,988,020.20 LIBOR 5.63%
Controlled Accumulation $ 0.00 Certificate Rate (LIBOR+16 b.p.) 5.79%
Amount
Required Subordinated $ 56,261,098.66 Servicing Fee Rate 1.00%
Amount
Annualized Servicing Fee 1.00% Investor Net Losses 0.00%
Rate ----
First Controlled TO BE DETERMINED Excess Spread 2.02%
Accumulation Date
Accumulation Period Length N/A
(months)
Expected Final Payment Date N/A
Initial Settlement Date 28-Mar-96
Required Participation 4.00%
Percentage
Subordinated Percentage 14.29%
SERIES 1996-1 MONTHLY REPORTING
- -------------------------------
REQUIRED EXCESS
SERIES 1996-1 INVESTED SUBORDINATED FUNDING
PRINCIPAL RECEIVABLES TOTAL AMOUNT AMOUNT AMOUNT
- --------------------- ----- ------ ------ ------
<S> <C> <C> <C> <C>
Series Allocation 100.00%
Percentage
Beginning Balance $370,201,941.66 $375,000,000.00 $56,261,098.66 $66,011,979.80
Floating Allocation 101.99% 101.99%
Percentage
Fixed Allocation N/A
Percentage
Principal Collections $223,675,166.04 $223,675,166.04 N.A. N.A.
New Principal Receivables $233,597,853.23 $233,597,853.23 N.A. N.A.
Principal Default Amounts $0.00 $0.00 N.A. N.A.
Receivables Added for $0.00 $0.00 N.A. N.A.
Additional Accounts
Controlled Deposit Amount $0.00 N/A N.A. N.A.
Principal Allocation
Percentage
"Pool Factor" 83.46472166%
Ending Balance $380,124,628.85 $384,922,687.19 $70,087,420.43 ($9,922,687.19)
Floating Allocation 100.67% 101.94%
Percentage
NON-PRINCIPAL RECEIVABLES
- -------------------------
Interest Collections $3,491,219.98
Recoveries on Receivables $0.00
Written Off
Investment Income $0.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
VW CREDIT, INC. -- SERVICER PAGE 4
20-NOV-97
VOLKSWAGEN CREDIT AUTO MASTER TRUST, SERIES 1996-1
SERVICING CERTIFICATE
---------------------
SUBORDINATED AMOUNT & RESERVE FUND CURRENT PREVIOUS
---------------------------------- ------- --------
<S> <C> <C>
Available Subordination Amount $74,673,840.98 $74,673,840.98
(Previous)
Required Subordination Draw Amount $ 0.00 N/A
Reserve Fund Funds to Inv. Default $ 0.00 N/A
Amount
Excess Servicing (Previous Period) $ 847,010.39 $ 565,032.20
--------------
(a) Available Subordinated Amount? $75,520,851.37 $75,238,873.18
(b) Available Subordinated Amount? $44,141,145.74 $42,904,447.05
Available Subordinated Amount $66,577,760.80 $65,658,240.07
Incremental Subordinated Amount $12,119,952.92 $12,437,130.87
Overconcentration Amount $12,960,127.27 $13,323,089.52
Beginning Reserve Fund Balance $ 1,875,000.00 $ 1,875,000.00
Reserve Fund Required Balance $ 1,875,000.00 $ 1,875,000.00
Reserve Fund Draw $ 0.00 N/A
Reserve Fund Required Deposit $ 0.00 N/A
Reserve Fund Deposit Amount $ 0.00 N/A
Reserve Fund Release $ 0.00 N/A
Ending Reserve Fund Balance $ 1,875,000.00 $ 1,875,000.00
REQUIRED INTEREST DISTRIBUTIONS
- ----------------------------------------
Available Interest Collections $ 3,423,126.78 $ 3,318,405.01
Certificateholder Interest Collections $ 3,491,219.98 $ 2,914,864.46
Subordinate Interest Collections $ 523,786.32 $ 430,168.53
Investment Income $ 0.00 $ 0.00
Reserve Fund Balance $ 1,875,000.00 $ 1,875,000.00
--------------
Total Interest Available $ 5,890,006.30 $ 5,220,032.99
Interest Shortfall $ 0.00 N/A
Additional Interest $ 0.00 N/A
Carry-over Amount $ 0.00 N/A
Carry-over Shortfall $ 0.00 N/A
Additional Carry-over Shortfall $ 0.00 N/A
Monthly Servicing Fee $ 310,539.41 $ 331,084.09
Investor Monthly Servicing Fee $ 257,490.02 $ 250,275.94
</TABLE>
