Auto loan securitization became a popular exercise in the past few years. As one of the largest auto markets, China has seen a surge of auto loan Asset-Backed Securities (ABS). In 2018, China's new auto loans ABS reached 122 billion RMB (approximately 25 billion AUD). It consists 13.05% of China's total interbank traded ABS market, second to Residual Mortgage Backed Security (RMBS) 5. Auto makers' finance companies like BMW Automotive Finance (China) and Mercedes-Benz Financial Services China are the major issuers in the market and are involved in more than 80% of the newly issued auto loan ABS. Auto makers' finance companies are both car sellers and lenders. To discuss the difference between these issuers and banks, please use two separate diagrams to illustrate the flow of funds, risk and return from the car buyers to the ABS investors. Auto loan securitization became a popular exercise in the past few years. As one of the largest auto markets, China has seen a surge of auto loan Asset-Backed Securities (ABS). In 2018, China's new auto loans ABS reached 122 billion RMB (approximately 25 billion AUD). It consists 13.05% of China's total interbank traded ABS market, second to Residual Mortgage Backed Security (RMBS) 5. Auto makers' finance companies like BMW Automotive Finance (China) and Mercedes-Benz Financial Services China are the major issuers in the market and are involved in more than 80% of the newly issued auto loan ABS. Auto makers' finance companies are both car sellers and lenders. To discuss the difference between these issuers and banks, please use two separate diagrams to illustrate the flow of funds, risk and return from the car buyers to the ABS investors