Investor Report

Mercedes-Benz Auto Receivables Trust 2016-1

Collection Period Ended

Page 1 of 5

Amounts in USD

31-Jul-2020

Dates

Interest Period of the Class A-1 Notes (from... to)

Collection Period (from... to)

17-Aug-2020

Distribution Date

31-Jul-2020

1-Jul-2020

30/360 Days

Actual/360 Days

Collection Period No.

Determination Date

Interest Period of the Class A-2A, A-3 and A-4 Notes (from... to)

13-Aug-2020

Record Date

14-Aug-2020

17-Aug-2020

15-Jul-2020

15-Aug-2020

15-Jul-2020

Summary

Balance

Beginning

Ending

Principal

Payment

Principal per $1000

Face Amount

Initial

Note

Factor

Balance

0.00

Class A-1 Notes

0.000000

350,000,000.00

0.000000

0.00

Class A-2A Notes

0.000000

500,000,000.00

0.000000

0.00

Class A-3 Notes

0.000000

532,000,000.00

0.000000

46,168,863.10

9,463,520.09

36,705,343.01

Class A-4 Notes

81.603174

115,970,000.00

0.316507

46,168,863.10

36,705,343.01

9,463,520.09

Total Note Balance

1,497,970,000.00

Yield Supplement Overcollateralization Amount

Adjusted Pool Balance

Overcollateralization

1,629,311.20

38,409,669.62

84,578,532.72

38,409,669.62

Pool Balance

86,466,113.14

76,744,323.83

1,591,275,988.02

1,536,386,784.98

54,889,203.04

1,887,580.42

75,115,012.63

38,416,784.98

Initial Overcollateralization Amount

Target Overcollateralization Amount

Current Overcollateralization Amount

Amount

Percentage

38,409,669.62

2.50%

38,416,784.98

2.50%

38,409,669.62

Interest Payment

Interest per

Interest & Principal

Payment

Interest & Principal Payment

per $1000 Face Amount

Interest Rate

$1000 Face Amount

Class A-1 Notes

0.750000%

0.00

0.000000

0.00

0.000000

Class A-2A Notes

1.110000%

0.00

0.000000

0.00

0.000000

Class A-3 Notes

1.260000%

0.00

0.000000

0.00

0.000000

Class A-4 Notes

1.460000%

56,172.12

0.484368

9,519,692.21

82.087542

$9,519,692.21

Total

$56,172.12

Investor Report

Mercedes-Benz Auto Receivables Trust 2016-1

Collection Period Ended

Page 2 of 5

Amounts in USD

31-Jul-2020

Net Liquidation Proceeds

Investment Earnings

Reserve Fund Draw Amount

Available Funds

Interest Collections

Purchase Amounts

Principal Collections

0.00

Advances made by the Servicer

Available Collections

9,970,425.62

Recoveries

0.00

9,619,952.69

9,970,425.62

32,534.00

46,486.93

270,733.71

718.29

0.00

(1) Total Servicing Fee

(2) Total Trustee Fees and any Asset Representations Reviewer

fees (max. $250,000 p.a.)

Nonrecoverable Advances to the Servicer

72,055.09

0.00

(3) Interest Distributable Amount Class A Notes

(4) Priority Principal Distributable Amount

56,172.12

0.00

(5) To Reserve Fund to reach the Reserve Fund Required Amount

(6) Regular Principal Distributable Amount

(7) Additional Servicing Fee and Transition Costs

0.00

9,463,520.09

0.00

(8) Total Trustee Fees and any Asset Representations Reviewer

fees [not previously paid under (2)]

0.00

(9) Excess Collections to Certificateholders

Total Distribution

9,970,425.62

378,678.32

Distributions

Available Funds

Distribution Detail

Paid

Shortfall

Due

0.00

72,055.09

Total Servicing Fee

Total Trustee Fee

0.00

56,172.12

0.00

Monthly Interest Distributable Amount

thereof on Class A-1 Notes

0.00

thereof on Class A-2A Notes

0.00

thereof on Class A-3 Notes

0.00

thereof on Class A-4 Notes

56,172.12

0.00

56,172.12

Interest Carryover Shortfall Amount

0.00

thereof on Class A-1 Notes

0.00

thereof on Class A-2A Notes

0.00

thereof on Class A-3 Notes

0.00

thereof on Class A-4 Notes

0.00

56,172.12

0.00

Interest Distributable Amount Class A Notes

Priority Principal Distributable Amount

0.00

Regular Principal Distributable Amount

9,463,520.09

0.00

9,463,520.09

Aggregate Principal Distributable Amount

9,463,520.09

0.00

Investor Report

Mercedes-Benz Auto Receivables Trust 2016-1

Collection Period Ended

Page 3 of 5

Amounts in USD

31-Jul-2020

Reserve Fund and Investment Earnings

Investment Earnings

Net Investment Earnings on the Reserve Fund

Reserve Fund

Reserve Fund Amount - Beginning Balance

Reserve Fund Deficiency

Reserve Fund Amount - Ending Balance

3,840,966.96

0.00

3,840,966.96

Reserve Fund Required Amount

plus top up Reserve Fund up to the Required Amount

plus Net Investment Earnings for the Collection Period

minus Net Investment Earnings

minus Reserve Fund Draw Amount

0.00

Investment Earnings for the Collection Period

Net Investment Earnings on the Collection Account

516.26

202.03

718.29

3,840,966.96

Notice to Investors

Note 1:

229 accounts with an outstanding principal balance of $2,295,751.45 did not have an installment payment scheduled for the current Collection Period.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Note 2:

In response to the COVID-19 (coronavirus) pandemic, the Servicer is taking steps to offer relief to customers impacted by the crisis. Such relief may take the form of deferrals of

payment obligations, initially estimated not to exceed three months and currently extended to a maximum of five months, which will generally result in an extension of the term of the

customer's contract by an equivalent number of months. The Servicer will not consider a customer's contract to be delinquent as a result of any such deferral. The Servicer is also

implementing a phased resumption of collection activities, including repossessions, that have been temporarily curtailed in response to the COVID-19 pandemic. Additional relief

may be offered to customers in affected areas in the future as the COVID-19 situation develops.

Note 3:

Mercedes-Benz Financial Services USA LLC, as Servicer, has elected to exercise its option under Section 8.01 of the Sales and Servicing Agreement to purchase the Trust Estate

(other than the Accounts) immediately after giving effect to the monthly payment of principal and interest on August 17, 2020 (the "Redemption Date") and has deposited

$36,705,343.01 into the Note Payment Account to redeem the balance of the Class A-4 notes. Therefore, pursuant to Section 10.01 of the Indenture, the Notes will be redeemed on the

Redemption Date.

Investor Report

Mercedes-Benz Auto Receivables Trust 2016-1

Collection Period Ended

Page 4 of 5

Amounts in USD

31-Jul-2020

Pool Statistics

Principal Gross Losses

Pool Data

1,591,275,988.02

3.35%

13.53

58.12

Cutoff Date Pool Balance

Amount

Number of Receivables

Pool Balance beginning of Collection Period

86,466,113.14

Principal Collections

Principal Collections attributable to Full Pay-offs

Principal Purchase Amounts

Pool Balance end of Collection Period

Weighted Average APR

2,743,135.14

0.00

101,836.62

76,744,323.83

11,576

12,357

Weighted Average Number of Remaining Payments

Weighted Average Seasoning (months)

As of Cutoff Date

Current

59,357

6,876,817.55

3.09%

50.38

Pool Factor

4.82%

15.40

Investor Report

Mercedes-Benz Auto Receivables Trust 2016-1

Collection Period Ended

Page 5 of 5

Amounts in USD

31-Jul-2020

Delinquency Profile

(1) A receivable is not considered delinquent if the amount past due is less than 10% of the payment due under such receivable

Total

76,744,323.83

11,576

100.00%

91-120 Days Delinquent

0.12%

88,868.95

61-90 Days Delinquent

0.16%

122,656.32

31-60 Days Delinquent

0.77%

587,425.31

Current

98.96%

75,945,373.25

11,484

Delinquency Profile

(1)

Amount

Number of Receivables

Percentage

Delinquency Trigger

60+ Delinquency Loans to EOP Aggregate Securitization Value

Delinquency Trigger occurred

3.550%

0.276%

Loss Statistics

Average Net Loss / (Gain)

6,898.91

Cumulative Principal Net Loss / (Gain) as % of Cutoff Date Pool Balance

Four Month Average

(0.015%)

Third Prior Collection Period

Second Prior Collection Period

Prior Collection Period

Current Collection Period

0.378%

Principal Net Loss / (Gain) as % of Average Pool Balance (annualized):

7,609,493.81

25,671.89

Principal Net Loss / (Gain)

Principal Recoveries

43,740.58

11,259,096.37

Principal Net Liquidation Proceeds

32,424.15

6,536,215.65

Principal Gross Losses

101,836.62

25,404,805.83

1,103

Losses

(1)

Amount

Number of Receivables

Amount

Current

Cumulative

0.478%

(1) Losses include accounts that have been charged off with a balance remaining of less than $50. These accounts are excluded in the Number of Receivables count as they are not

considered a charge-off on a defaulted loan.

(0.674%)

(0.770%)

1.007 %

Mercedes-Benz Auto Receivables Trust 2016-1 10-D