UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549










FORM 10-K



ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934



|þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2016   
|- | --------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                             
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

For the transition period from 
        to



Commission File Number of Issuing Entity:
333-208659-01
Central Index Key Number of Issuing Entity: 0001683170

USAA Auto Owner Trust 2016-1

(Exact name of Issuing Entity as specified
in its charter)Commission File Number of Depositor: 333-208659Central Index Key Number of Depositor: 0001178049USAA Acceptance, LLC
(Exact name of Depositor as specified in its charter)



Central Index Key Number
of Sponsor: 0000908392

USAA Federal Savings
Bank

(Exact name of Sponsor as specified in its
charter)



| | Delaware                                 |  | 81-6668575            | 
| | ---------------------------------------- |  | --------------------- | 
| | (State or other jurisdiction of          |  | (I.R.S. Employer      | 
| | incorporation or organization of         |  | Identification No. of | 
| | Issuing Entity)                          |  | Issuing Entity)       | 
| |                                          |  |                       | 
| | c/o Wells Fargo Delaware                 |  |                       | 
| | Trust Company, National Association      |  |                       | 
| | 919 Market Street                        |  |                       | 
| | Suite 1600                               |  |                       | 
| | Wilmington, Delaware                     |  | 19801                 | 
| | (Address of principal executive offices) |  | (Zip Code)            | 
| | of Issuing Entity)                       |  |                       | 



(302) 575-2004

(Issuing Entity’s telephone number,
including area code)










Securities registered pursuant to Section 12(b) of the Act:



|Title
        of each class |  | Name of
        each exchange on which registered
|--------------------------- |  | -------------------------------------------------
|None                        |  | None                                             



Securities registered pursuant to Section 12(g) of the Act:         None



Indicate by check mark if the registrant is a
well-known seasoned issuer (as defined in Rule 405 of the Act).    o  Yes    þ  No









Indicate by check mark if the registrant is not required to
file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act. o Yes þ No



Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. þ Yes o
No



Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§232.405of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).

Yes þ
No o



Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ



Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated
filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check
one):



|Large Accelerated Filer: o                    |  | Accelerated Filer: o        
|--------------------------------------------- |  | ----------------------------
|                                              |  |                             
|Non-accelerated filer: þ                      |  | Smaller reporting company: o
|(Do not check if a smaller reporting company) |  |                             



Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).Yes o
No þ



State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average
bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal
quarter. None



Documents incorporated by reference: See Exhibit Index.







FORM 10-K



PART I



THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(1) TO FORM 10-K:



| | (A) | Item 1  | Business.         
| | --- | ------- | ------------------
| | (B) | Item 1A | Risk Factors.     
| | (C) | Item 2  | Properties.       
| | (D) | Item 3  | Legal Proceedings.



Item 1B. Unresolved Staff Comments.



Not Applicable.



Item 4. Mine Safety
Disclosures.



Not Applicable.



PART II



THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(1) TO FORM 10-K:



| | (A) | Item 5  | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
| | --- | ------- | -------------------------------------------------------------------------------------------------------------
| | (B) | Item 6  | Selected Financial Data.                                                                                     
| | (C) | Item 7  | Management’s Discussion and Analysis of Financial Condition and Results of Operation.                        
| | (D) | Item 7A | Quantitative and Qualitative Disclosures About Market Risk.                                                  
| | (E) | Item 8  | Financial Statements and Supplementary Data.                                                                 
| | (F) | Item 9  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.                        
| | (G) | Item 9A | Controls and Procedures.                                                                                     



Item 9B. Other Information.



None.



PART III



THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH
GENERAL INSTRUCTION J(1) TO FORM 10-K:



| | (A) | Item 10 | Directors, Executive Officers and Corporate Governance.                                        
| | --- | ------- | -----------------------------------------------------------------------------------------------
| | (B) | Item 11 | Executive Compensation.                                                                        
| | (C) | Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
| | (D) | Item 13 | Certain Relationships and Related Transactions, and Director Independence.                     
| | (E) | Item 14 | Principal Accounting Fees and Services.                                                        







PART IV



Item 15. Exhibits, Financial Statement Schedules.



| | (a) | (1)                                                                                           | Not applicable.                                                                              
| | --- | --------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------
| |     |                                                                                               |                                                                                              
| |     | (2)                                                                                           | Not applicable.                                                                              
| |     |                                                                                               |                                                                                              
| |     | (3)                                                                                           | The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index.
| |     |                                                                                               |                                                                                              
| | (b) | The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index.
| |     |                                                                                              
| | (c) | None.                                                                                        



Item 16. Form 10-K Summary.



Not Applicable.



SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL
INSTRUCTION J(2) TO FORM 10-K:



Item 1112(b) of Regulation AB. Significant Obligors of Pool
Assets (Financial Information).



Not Applicable.



Item 1114(b)(2) of Regulation AB. Credit Enhancement and
Other Support, Except for Certain Derivatives Instruments (Information Regarding Significant Enhancement Providers – Financial
Information).



Not Applicable.



Item 1115(b) of Regulation AB. Certain Derivatives Instruments
(Financial Information).



Not Applicable.



Item 1117 of Regulation AB. Legal Proceedings.



No legal proceedings are pending against any of USAA Federal
Savings Bank (in its capacity as the sponsor, (the “Sponsor”), in its capacity as an originator contemplated by Item
1110(b) of Regulation AB, (the “Originator”), in its capacity as servicer, (the “Servicer”) and in its
capacity as administrator (the “Administrator”) of USAA Auto Owner Trust 2016-1 (the “Issuing Entity”),
USAA Acceptance, LLC (the “Depositor”),Wells Fargo Delaware Trust Company, National Association (the “Owner
Trustee”) or the Issuing Entity, or of which any property of the foregoing is the subject, that are or would be material
to holders of the asset-backed notes (the “Notes”) or the asset-backed certificate (the “Certificate”).
No such proceedings are known to be contemplated by governmental authorities.



U.S. Bank National Association, as the indenture trustee (the
“Indenture Trustee”), has provided the following information for inclusion in this Form 10-K:



Since 2014 various plaintiffs or groups of plaintiffs, primarily
investors, have filed claims against U.S. Bank National Association (“U.S. Bank”), in its capacity as trustee or successor
trustee (as the case may be) under certain residential mortgage backed securities (“RMBS”) trusts. The plaintiffs or
plaintiff groups have filed substantially similar complaints against other RMBS trustees, including Deutsche Bank, Citibank, HSBC,
Bank of New York Mellon and Wells Fargo. The complaints against U.S. Bank allege the trustee caused losses to investors as a result
of alleged failures by the sponsors, mortgage loan sellers and servicers for these RMBS trusts and assert causes of









action based
upon the trustee’s purported failure to enforce repurchase obligations of mortgage loan sellers for alleged breaches of representations
and warranties concerning loan quality. The complaints also assert that the trustee failed to notify securityholders of purported
events of default allegedly caused by breaches of servicing standards by mortgage loan servicers and that the trustee purportedly
failed to abide by a heightened standard of care following alleged events of default.



Currently U.S. Bank is a defendant in multiple actions alleging
individual or class action claims against the trustee with respect to multiple trusts as described above with the most substantial
case being: BlackRock Balanced Capital Portfolio et al v. U.S. Bank National Association, No. 605204/2015 (N.Y. Sup. Ct.)
(class action alleging claims with respect to approximately 794 trusts) and its companion case BlackRock Core Bond Portfolio
et al v. U.S. Bank National Association, No. 14-cv-9401 (S.D.N.Y.). Some of the trusts implicated in the aforementioned Blackrock
cases, as well as other trusts, are involved in actions brought by separate groups of plaintiffs related to no more than 100 trusts
per case.



U.S. Bank cannot assure you as to the outcome of any of the
litigation, or the possible impact of these litigations on the trustee or the RMBS trusts. However, U.S. Bank denies liability
and believes that it has performed its obligations under the RMBS trusts in good faith, that its actions were not the cause of
losses to investors and that it has meritorious defenses, and it intends to contest the plaintiffs’ claims vigorously.



Item 1119 of Regulation AB. Affiliations and Certain Relationships
and Related Transactions.



Information required by Item 1119 of Regulation AB has been
omitted from this report on Form 10-K in reliance on the Instruction to Item 1119.



Item 1122 of Regulation AB. Compliance with Applicable Servicing
Criteria.



The Servicer and the Indenture Trustee (collectively, the “Servicing
Parties”) have each been identified by the Depositor as parties participating in the servicing function with respect to the
asset pool held by the Issuing Entity. Each of the Servicing Parties has completed a report on an assessment of compliance with
the servicing criteria set forth in paragraph (d) of Item 1122 of Regulation AB applicable to it (each, a “Servicing Assessment
Report”), which Servicing Assessment Reports are attached as exhibits to this Form 10-K. In addition, each of the Servicer
and the Indenture Trustee has provided an attestation report (each, an “Attestation Report”) by an independent registered
public accounting firm, which reports are also attached as exhibits to this Form 10-K. Neither the Servicing Reports nor the Attestation
Reports for the Indenture Trustee and the Servicer have identified any material instances of noncompliance with the servicing criteria
described in such Servicing Report as being applicable to the Indenture Trustee or the Servicer, as applicable.



Item 1123 of Regulation AB. Servicer Compliance Statement.



The Servicer has completed a statement of compliance with its
activities during the reporting period and of its performance under the applicable servicing agreement (a “Compliance Statement”),
signed by an authorized officer of the Servicer. The Compliance Statement is attached as Exhibit 35.1 to this Form 10-K.







SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Depositor has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



| | USAA ACCEPTANCE, LLC                      
| | ------------------------------------------
| |                                           
| | By:                                       
| | Name:                                     
| | Title:                                    
| | charge of securitization of the depositor)



Date: March
30, 2017



Supplemental Information to be Furnished
with Reports Filed Pursuant to Section 15(d) of the Act by Registrants which have not Registered Securities Pursuant to Section
12 of the Act.



Not Applicable.







EXHIBIT INDEX



|Exhibit 3.1  |  | Amended and Restated Limited Liability Company Agreement of the Depositor (incorporated by reference from Exhibit 3.2 to Form SF-3/A of Depositor filed with the Commission on March 24, 2016).                                                                                                                       
|------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 4.1  |  | Indenture, dated as of September 21, 2016, between the Issuing Entity and the Indenture Trustee, and acknowledged and accepted by the Depositor and USAA Federal Savings Bank (incorporated by reference from Exhibit 4.1 to the Issuing Entity’s filing on Form 8-K filed with the Commission on September 23, 2016).
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 10.1 |  | Purchase Agreement, dated as of September 21, 2016, between USAA Federal Savings Bank, as seller, and the Depositor (incorporated by reference from Exhibit 10.1 to the Issuing Entity’s filing on Form 8-K filed with the Commission on September 23, 2016).                                                         
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 10.2 |  | Sale and Servicing Agreement, dated as of September 21, 2016, among the Issuing Entity, the Depositor, USAA Federal Savings Bank, as servicer, and the Indenture Trustee (incorporated by reference from Exhibit 10.2 to the Issuing Entity’s filing on Form 8-K filed with the Commission on September 23, 2016).    
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 10.3 |  | Administration Agreement, dated as of September 21, 2016, between the Issuing Entity and the Administrator, and acknowledged and accepted by the Indenture Trustee (incorporated by reference from Exhibit 10.3 to the Issuing Entity’s filing on Form 8-K filed with the Commission on September 23, 2016).          
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 10.4 |  | Amended and Restated Trust Agreement, dated as of September 21, 2016, between the Depositor and the Owner Trustee (incorporated by reference from Exhibit 10.4 to the Issuing Entity’s filing on Form 8-K filed with the Commission on September 23, 2016).                                                           
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 10.5 |  | Asset Representations Review Agreement, dated as of September 21, 2016, among USAA Federal Savings Bank, the Issuing Entity and Clayton Fixed Income Services LLC (incorporated by reference from Exhibit 10.5 to the Issuing Entity’s filing on Form 8-K filed with the Commission on September 23, 2016).           
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 31   |  | Certification of Senior Officer in Charge of the Servicing Function of the Servicer Pursuant to Rule 15d-14(d).                                                                                                                                                                                                       
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 33.1 |  | Report on Assessment of Compliance with Applicable Servicing Criteria of USAA Federal Savings Bank.                                                                                                                                                                                                                   
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 33.2 |  | Report on Assessment of Compliance with the Servicing Criteria of U.S. Bank National Association.                                                                                                                                                                                                                     
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 34.1 |  | Attestation Report on Assessment of Compliance with the Servicing Criteria of Ernst & Young LLP, on behalf of USAA Federal Savings Bank.                                                                                                                                                                              
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 34.2 |  | Attestation Report on Assessment of Compliance with Servicing Criteria of Ernst & Young, on behalf of U.S. Bank National Association.                                                                                                                                                                                 
|             |  |                                                                                                                                                                                                                                                                                                                       
|Exhibit 35.1 |  | Annual Servicer Compliance Statement of the Servicer for the period beginning September 21, 2016 and ended December 31, 2016.