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Volkswagen Financial Services Australia Pty Limited, serving as servicer and reporting entity for the Driver Australia Nine Trust, has issued its Period 26 monthly investor report, covering 1 June 2026 to 30 June 2026. Published on 16 July 2026, the report outlines the performance of this asset-backed securities trust, which holds an aggregate discounted receivables balance of AUD 750,005,187.20 across 20,885 active contracts. Managed by Perpetual Corporate Trust Limited as trustee, the securitisation vehicle is backed by automotive finance receivables and features notes rated by Fitch Ratings and Moody's. Investors will closely monitor the trust’s amortisation progress and cumulative net loss figures as the transaction approaches its scheduled clean-up call in January 2028.
Key Highlights
- Driver Australia Nine Trust (ASX:DA9) is a securitisation trust with Perpetual Corporate Trust Limited as trustee and Volkswagen Financial Services Australia Pty Limited as originator, seller, and servicer.
- Period 26 report covers 1 June 2026 to 30 June 2026, published on 16 July 2026, with payment date on 21 July 2026.
- Aggregate discounted receivables balance totals AUD 750,005,187.20 across 20,885 contracts: 14,386 new car contracts (68.88%) and 6,499 used car contracts (31.12%).
- Cumulative net loss as a percentage of discounted receivables balance at pool cut date stands at 0.63246%, below all four credit enhancement increase condition thresholds.
- Clean-up call condition currently at 31.86% of outstanding discounted receivables balance; clean-up call expected from January 2028 when balance falls below 10% of initial pool.
Overview of Driver Australia Nine Trust and Volkswagen Financial Services Australia's Roles
The Driver Australia Nine Trust is an Australian asset-backed securities (ABS) transaction where Volkswagen Financial Services Australia Pty Limited (ABN 20 097 071 460) originated and sold automotive finance receivables into a special purpose trust. The trust’s initial cut-off date was 30 April 2024, with a note issue date of 27 May 2024. Perpetual Corporate Trust Limited (ABN 99 000 341 533), based at Level 18, 123 Pitt Street, Sydney, acts as trustee, while Perpetual Nominees Limited (ABN 37 000 733 700) serves as trust manager.
Volkswagen Financial Services Australia Pty Limited fulfills multiple roles: originator, seller, and ongoing servicer of the automotive finance contracts. The reporting entity for Period 26 operates from its ABS Operations office at Level 1, 24 Muir Road, Chullora NSW 2190. This structure aligns with typical Australian auto ABS transactions, where the manufacturer’s finance arm retains servicing to maintain customer relations while transferring credit risk to capital market investors via rated notes.
Period 26 Pool Details: 20,885 Contracts with AUD 750 Million Receivables
As of 30 June 2026, the trust held 20,885 contracts with a total discounted receivables balance of AUD 750,005,187.20. New car contracts number 14,386 (68.88% by contract count) and represent AUD 572,002,379.00 (76.27% of the balance). Used car contracts total 6,499 (31.12%), with an aggregate balance of AUD 178,002,808.20 (23.73%).
By product type, chattel mortgage contracts account for 11,836 contracts (56.67%) and AUD 508,207,935.10 (67.76%), while consumer loan contracts total 9,049 (43.33%) with AUD 241,797,252.10 (32.24%). This split reflects Volkswagen Financial Services Australia's dual retail and commercial lending portfolio, with chattel mortgages primarily used by business borrowers and consumer loans by individual buyers.
Transaction Timeline: Issue Date, Maturity, and January 2028 Clean-Up Call
Issued on 27 May 2024, the Driver Australia Nine Trust matures on 21 September 2032. The transaction features monthly reporting and payment cycles, with reports published on the 16th and payments on the 21st of each month. For Period 26, the payment date was 21 July 2026, with the next payment scheduled for 21 August 2026. The interest accrual period covered 22 June 2026 to 21 July 2026 (29 days).
A key feature is the clean-up call option, allowing Volkswagen Financial Services Australia to repurchase all receivables when the outstanding discounted receivables balance falls below 10% of the original pool. This option is expected to be available from January 2028. As of Period 26, the clean-up call condition stood at 31.86%, indicating the pool has not yet amortised to the 10% threshold.
Cumulative Net Losses at 0.63246% Remain Below Credit Enhancement Thresholds
The cumulative net loss rate, a critical ABS metric, was 0.63246% of the discounted receivables balance as of Period 26. Net salvage loss for the period was AUD 189,415.39, with cumulative net salvage losses totaling AUD 4,743,514.49. The discounted balance at the pool cut date was AUD 750,005,187.21.
Four credit enhancement increase condition levels exist to trigger additional credit support if cumulative net losses exceed thresholds: Level 1a (0.40% before or during May 2025), Level 1b (0.80% from June 2025 to May 2026), Level 1c (1.20% after May 2026), and Level 2 (1.80% any payment date). None have been triggered as of Period 26.
Receivables Repurchase: Two Contracts Bought Back for AUD 12,848.50
During Period 26, two contracts with an outstanding discounted receivables balance of AUD 12,848.50 were repurchased at the same price. No interest compensation was recorded. No prior period repurchases were reported, making these two contracts the total repurchases to date.
Repurchases occur due to non-eligibility discovered post-cut-off, repudiation, reloaded, or flat-cancelled contracts. This standard ABS structural protection ensures only eligible receivables remain, providing remediation for ineligible contracts. The repurchase amount is minimal relative to the pool and did not trigger any broader effects.
Stable Counterparty Arrangements with No Replacements Reported
The Period 26 report confirms no changes to key transaction parties, with no replacements recorded in the current or prior periods. Stability of counterparties such as servicer, trustee, and swap counterparty is vital for ABS credit profiles.
Key counterparties include MUFG Securities Asia Limited (lead manager, Hong Kong), P.T. Limited (security trustee, Sydney), Australia and New Zealand Banking Group Limited (account bank), ING Bank N.V. (swap counterparty, Amsterdam), and clearing via Austraclear Limited, Bank of America N.A. Australian Branch, and DBS Bank Ltd.
Investment-Grade Note Ratings from Fitch and Moody's
Driver Australia Nine notes hold ratings from Fitch Ratings and Moody's. Fitch assigns a short-term rating of F1+ and a long-term rating of AA- with a stable outlook. Moody's rates the notes P-1 short-term and A long-term, with no outlook specified.
These ratings indicate high credit quality and low default risk, aligning with the transaction’s strong cumulative loss performance and ongoing pool amortisation.
Monthly Reporting and Volkswagen Financial Services Australia's Servicing Role
Volkswagen Financial Services Australia Pty Limited manages day-to-day servicing, including payment collection, arrears management, prepayments, and performance reporting. The Period 26 report, part of monthly disclosures, covers arrears, prepayments, net salvage losses, pool data, and hardship extensions.
Reports are published monthly on the 16th, covering the prior month. Period 26 covers 1 June to 30 June 2026, with the next payment date on 21 August 2026. The update was lodged on the ASX under ticker DA9, providing retail and institutional investors detailed monthly data including pool composition, arrears, cash waterfall, and amortisation profiles.
New Versus Used Car Receivables and Credit Quality Implications
The pool’s composition between new and used car contracts offers insight into credit risk. New car receivables, comprising 68.88% of contracts and 76.27% of the balance (AUD 572,002,379.00), generally carry lower credit risk due to higher borrower quality and stronger residual values.
Used car receivables represent 31.12% of contracts and 23.73% of the balance (AUD 178,002,808.20). While typically riskier, the overall cumulative net loss rate of 0.63246% suggests stable performance. The product split, with chattel mortgages at 67.76% of the balance, indicates significant exposure to business borrowers who may behave differently under economic stress compared to consumer borrowers.
Investor Considerations for Upcoming Periods
Investors should monitor cumulative net loss trends relative to credit enhancement thresholds and the pace of pool amortisation toward the January 2028 clean-up call. As of Period 26, the net loss rate of 0.63246% is between Level 1a (0.40%, now elapsed) and Level 1c (1.20%) thresholds, with no triggers to date. Any acceleration toward 1.20% or 1.80% levels warrants attention.
The clean-up call condition at 31.86% shows meaningful amortisation but a substantial balance remains above the 10% trigger. Additional metrics such as arrears, prepayments, hardship extensions, and any counterparty changes will also be key for noteholders. The next Period 27 update is expected around 16 August 2026, maintaining the transaction’s consistent monthly reporting cadence.
