<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.

For quarterly period ended June 30, 1999

                                         OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For transition period from _______________ to _______________

Commission File No. 0-12553

                             PACCAR FINANCIAL CORP.
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

           Washington                           91-6029712
-------------------------------     ------------------------------------
(State or other jurisdiction of     (I.R.S. Employer Identification No.)
incorporation or organization)

         777 - 106th Avenue N.E., Bellevue, Washington       98004
         ----------------------------------------------------------
             Address of Principal Executive Offices)       (Zipcode)

       Registrant's telephone number, including area code: (425) 468-7100
                                                           --------------

--------------------------------------------------------------------------------
       Former name, former address and former fiscal year, if changed
                          since last report)

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 periods that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
                                                   --   --

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 145,000 shares at July 31,
1999.

THE REGISTRANT IS A WHOLLY-OWNED SUBSIDIARY OF PACCAR Inc AND MEETS THE
CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (H)(1)(a) AND (b) OF FORM 10-Q
AND IS, THEREFORE, FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

<PAGE>
Item 1 FINANCIAL STATEMENTS

                                       PACCAR Financial Corp.

                                           BALANCE SHEETS
                                       (Thousands of Dollars)

<TABLE>
<CAPTION>

                                                                                  June 30       December 31
                                                                                    1999           1998*
                                                                                ---------------------------
                                                                                (Unaudited)
<S>                                                                             <C>             <C>
ASSETS
  Cash                                                                           $    5,706     $   14,641
  Finance and other receivables, net of
    allowance for losses of $48,600 ($44,800 in 1998)                             2,878,680      2,606,540
  Loans to affiliate                                                                 16,335         13,493
  Equipment on operating leases, net of
    allowance for depreciation of $13,027 ($10,894 in 1998)                          29,320         30,076
  Other assets                                                                       18,953         15,070
                                                                                --------------------------

TOTAL ASSETS                                                                     $2,948,994     $2,679,820
                                                                                --------------------------
                                                                                --------------------------

LIABILITIES
  Accounts payable and accrued expenses                                          $   43,469     $   38,590
  Payable for finance receivables acquired                                            2,188         41,526
  Commercial paper and other short-term borrowings                                1,286,422      1,212,743
  Medium-term notes                                                               1,168,000        956,000
  Income taxes - current and deferred                                                65,855         62,732
                                                                                --------------------------

TOTAL LIABILITIES                                                                 2,565,934      2,311,591
                                                                                --------------------------
STOCKHOLDER'S EQUITY
  Preferred stock, par value $100 per share
    6% noncumulative and nonvoting
    450,000 shares authorized,
    310,000 shares issued and outstanding                                            31,000         31,000
  Common stock, par value $100 per share
    200,000 shares authorized,
    145,000 shares issued and outstanding                                            14,500         14,500
  Paid-in capital                                                                    15,440         13,990
  Retained earnings                                                                 322,120        308,739
                                                                                --------------------------

TOTAL STOCKHOLDER'S EQUITY                                                          383,060        368,229
                                                                                --------------------------

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY                                       $2,948,994     $2,679,820
                                                                                --------------------------
                                                                                --------------------------
</TABLE>

*The December 31, 1998 Balance Sheet has been derived from audited financial
statements

See accompanying notes


                                       -2-
<PAGE>
                                                 PACCAR Financial Corp.

                                      STATEMENTS OF INCOME AND RETAINED EARNINGS
                                                 (Thousands of Dollars)

<TABLE>
<CAPTION>

                                                               Three Months Ended                  Six Months Ended
                                                                    June 30                            June 30

                                                              1999            1998              1999              1998
                                                           ----------------------------------------------------------------
                                                                   (Unaudited)                        (Unaudited)
<S>                                                        <C>              <C>               <C>               <C>

Interest and other income                                  $  55,939        $  48,798         $108,140          $  94,630
Rentals on operating leases                                    2,005            2,211            3,987              4,625
                                                           ----------------------------------------------------------------

TOTAL FINANCE INCOME                                          57,944           51,009          112,127             99,255

Interest expense                                              32,580           27,712           62,883             53,661
Other borrowing expense                                          655              427            1,250                956
Depreciation expense related
  to operating leases                                          1,537            1,602            3,063              3,373
                                                           ----------------------------------------------------------------

TOTAL FINANCE EXPENSES                                        34,772           29,741           67,196             57,990

FINANCE MARGIN                                                23,172           21,268           44,931             41,265

Insurance premiums earned                                      1,988            1,652            3,856              3,161
Insurance claims and underwriting expenses                     1,492            1,260            2,954              2,357
                                                           ----------------------------------------------------------------

INSURANCE MARGIN                                                 496              392              902                804

Selling, general and
  administrative expenses                                      7,003            6,839           14,118             13,552
Provision for losses on receivables                            3,568            2,863            6,073              4,768
                                                           ----------------------------------------------------------------

INCOME BEFORE INCOME TAXES                                    13,097           11,958           25,642             23,749

Federal and state income taxes                                 5,097            4,565            9,977              9,289
                                                           ----------------------------------------------------------------

NET INCOME                                                     8,000            7,393           15,665             14,460

Retaining earnings at beginning of period                    314,120          291,172          308,739            286,198
Cash dividends paid                                                -                -           (2,284)            (2,093)
                                                           ----------------------------------------------------------------

RETAINED EARNINGS AT END OF PERIOD                          $322,120         $298,565         $322,120           $298,565
                                                           ----------------------------------------------------------------
                                                           ----------------------------------------------------------------

</TABLE>

Earnings per share and dividends per share are not reported because the
Company is a wholly-owned subsidiary of PACCAR Inc.

See accompanying notes.


                                       -3-
<PAGE>
                                 PACCAR Financial Corp.
                                STATEMENTS OF CASH FLOWS
                                 (Thousands of Dollars)

<TABLE>
<CAPTION>

                                                                   Six Months Ended
                                                                        June 30
                                                                  1999           1998
                                                               ---------------------------
                                                                      (Unaudited)

OPERATING ACTIVITIES:
<S>                                                            <C>            <S>
  Net income                                                   $  15,665      $  14,460
  Items included in net income not
      affecting cash:
    Provision for losses on receivables                            6,073          4,768
    Increase (decrease) in deferred taxes payable                    789         (5,582)
    Depreciation and amortization                                  5,252          5,372
  Increase in payables,
    income taxes and other                                         2,418            185
                                                               ---------------------------

NET CASH PROVIDED BY
OPERATING ACTIVITIES                                              30,197         19,203

INVESTING ACTIVITIES:

  Finance and other receivables acquired                        (872,381)      (695,283)
  Collections on finance and other receivables                   598,430        488,312
  Net increase in wholesale receivables                          (47,267)       (12,155)
  Acquisition of equipment                                        (3,944)        (4,591)
  Proceeds from disposal of equipment                              1,185          5,117
                                                               ---------------------------

NET CASH USED IN
INVESTING ACTIVITIES                                            (323,977)      (218,600)

FINANCING ACTIVITIES:

  Net increase in commercial paper
    and other short-term borrowings                               73,679        320,870
  Proceeds from medium-term notes                                385,000        205,000
  Payments of medium-term notes                                 (173,000)      (329,000)
  Additions to paid-in capital                                     1,450          1,904
  Payment of cash dividend                                        (2,284)        (2,093)
                                                               ---------------------------

NET CASH PROVIDED BY
FINANCING ACTIVITIES                                             284,845        196,681
                                                               ---------------------------

NET DECREASE IN CASH                                              (8,935)        (2,716)

CASH AT BEGINNING OF PERIOD                                       14,641         13,370
                                                               ---------------------------

CASH AT END OF PERIOD                                          $   5,706      $  10,654
                                                               ---------------------------
                                                               ---------------------------

</TABLE>
See accompanying notes.


                                            -4-
<PAGE>

                             PACCAR Financial Corp.

                          NOTES TO FINANCIAL STATEMENTS

NOTE A--BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. However, in the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. For further information, refer to the
financial statements and footnotes included in PACCAR Financial Corp.'s (the
"Company") Annual Report on Form 10-K for the year ended December 31, 1998.

Reclassifications: Certain prior year amounts have been reclassified to conform
to the 1999 presentation.

NOTE B--TRANSACTIONS WITH PACCAR INC AND AFFILIATES

The Company and PACCAR Inc ("PACCAR") are parties to a Support Agreement which
obligates PACCAR to provide, when required, financial assistance to the Company
to assure that the Company maintains a ratio of earnings to fixed charges (as
defined) of at least 1.25 to 1 for any fiscal year, and that PACCAR own,
directly or indirectly, all outstanding voting stock of the Company. The
required ratio for the six months ended June 30, 1999 and 1998 was met without
assistance.

PACCAR charges the Company for certain administrative services it provides.
These costs are charged to the Company based upon the Company's specific use
of the services and PACCAR's cost. Management considers these charges
reasonable and not significantly different from the costs that would be
incurred if the Company were on a stand-alone basis. In lieu of current year
payment, PACCAR recognizes certain of these administrative services as an
additional investment in the Company. The Company records the investment as
paid-in capital. The Company pays a dividend to PACCAR for the paid-in
capital invested in the prior year. Cash dividends of $2,284 and $2,093 were
paid to PACCAR during the first quarter of 1999 and 1998, respectively. No
dividends were paid during the second quarter of 1999 or 1998.

Periodically, the Company borrows funds from PACCAR and makes loans to PACCAR.
At June 30, 1999 and 1998, there were no outstanding loans for the Company from
or to PACCAR.

The Company periodically loans funds to certain foreign and domestic finance
and leasing affiliates of PACCAR. These various affiliates have Support
Agreements with PACCAR, similar to the Company's Support Agreement. The
foreign affiliates operate in the United Kingdom, Canada and Australia, and
any resulting currency exposure is fully hedged. The foreign finance
affiliates provide financing and leasing of trucks and related equipment
manufactured primarily by PACCAR and sold through PACCAR's independent
dealers in the United Kingdom, Canada and Australia. The domestic leasing
affiliate finances trucks and trailers under direct finance leases, operating
leases and other financing agreements for terms of one to ten years. The
Company will not make loans to the foreign affiliates in excess of the
equivalent of $50 million United States dollars, or loans to its domestic
leasing affiliate in excess of $200 million, unless the amount in excess of
such limits is guaranteed by PACCAR. The Company periodically reviews the
funding alternatives for these affiliates, and these limits may be revised in
the future. There was a total of $16 million and $3 million in loans
outstanding to a foreign affiliate operating in the United Kingdom at June
30, 1999 and 1998, respectively, and no loans outstanding to the domestic
leasing affiliate for either period.


                                       -5-
<PAGE>

NOTE C--PREFERRED STOCK

The Company's Articles of Incorporation provide that the 6% non-cumulative,
nonvoting preferred stock (100% owned by PACCAR) is redeemable only at the
option of the Company's Board of Directors.

Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
       OF OPERATIONS

RESULTS OF OPERATIONS

The finance margin improved 9% to $44.9 million for the first half of 1999, from
$41.3 million for first half of 1998, primarily due to growth in receivable
balances. Average receivables of $2.8 billion for the six months ended June 30,
1999 were 22% higher than the same period last year, reflecting record volume.
New lending volume increased 24% to $837 million for year to date 1999 from $673
million for the same period last year. The average margin rate on receivables
has continued to decline to 3.27% for the first half of 1999 from 3.67% for the
same period in 1998 due to higher leverage and intense rate competition in the
truck lending market.

Selling, general and administrative expenses of $14.1 million for the first half
of 1999 were 4% higher than for the first half of 1998 due to increased staffing
and Year 2000 related costs. The provision for losses increased 27% to $6.1
million for the first half of 1999 as compared to the first half of 1998 due
primarily to asset growth. The level of the allowance reflects the risks
inherent in the financing of commercial highway transportation equipment.

As a result of the foregoing factors, net income for the first half of 1999
increased 8% to $15.7 million from $14.5 million for the first half of 1998.


LIQUIDITY AND CAPITAL RESOURCES

During the first half of 1999, the Company funded its portfolio growth
primarily through the issuance of medium-term notes, which increased $212
million during the period. In September 1998, the Company registered $1
billion of senior debt securities under the Securities Act of 1933 for
offering to the public. As of June 30, 1999, $420 million of such securities
were available for issuance.

In order to minimize exposure to fluctuations in interest rates, the Company
seeks to borrow funds or enter into interest rate contracts with interest
rate characteristics similar to the characteristics of its receivables and
leases. Other considerations which affect the Company's funding operations
include the amount of fixed and variable rate receivables, the maturity
schedule of existing debt, the availability of desired debt maturities and
the level of interest rates.

As of June 30, 1999, the Company and PACCAR maintained total unused bank lines
of credit of $755 million which are largely used to support the Company's
commercial paper borrowings. Of this, $680 million are shared with PACCAR and
$75 million pertain to the Company alone.

Other information on liquidity and sources of capital as presented in the
Company's 1998 Annual Report on Form 10-K continues to be relevant.


                                       -6-
<PAGE>

YEAR 2000 ISSUE
  As a finance company, the Company relies upon computer processing to
  originate and service loans and leases. The Company has identified and
  evaluated its major internal systems for Year 2000 compliance. All major
  internal systems were converted by June 30, 1999. Overall completion,
  including comprehensive testing of all systems working together and
  contingency planning, is scheduled for completion by October 31, 1999.
  Management regularly reviews the progress under this plan. A team consisting
  of full-time employees supplemented with contract staff is supporting the
  Year 2000 effort. Total cost to the Company is expected to be approximately
  $2.0 million, of which $1.7 million has been incurred through June 30, 1999.
  The project is being funded with operating funds.

  Since the Company is not a manufacturer, the Company's reliance on embedded
  computer systems is limited to facilities related matters, such as office
  security systems and telecommunications equipment. The Company has confirmed
  with its vendors that such systems will be, or are, Year 2000 compliant.

  The Company also relies on the ability of banks and other financial
  institutions participating in the public debt markets to fund its lending
  activity. If there is a significant failure of banking systems or systems of
  other entities within the public market structure due to the Year 2000 issue,
  the Company's ability to access the credit markets and process payments could
  be adversely affected. The Company has sent letters and has received
  responses indicating that banks and other financial institutions with which
  it has relationships already are, or will be, compliant by the Year 2000.

  If the United States economy enters into a recession due to widespread
  interruption in commercial activity or the effect of diverting substantial
  resources to achieve Year 2000 compliance, the Company would likely
  experience an increase in credit losses, a reduction in interest income and a
  drop in new lending volume. Due to the cyclical nature of the trucking
  business, however, the possibility of a general economic or a trucking
  industry downturn has long been a factor in the Company's credit granting
  decisions.

  Since the Company is a collateral based lender with hard copy documents to
  enforce its loans and leases, the most reasonably likely worst case scenario
  if all its systems are not Year 2000 compliant is that information and
  reports would contain inaccuracies that would slow the efficient processing
  of payments, result in increased administrative costs to the Company and
  generally reduce customer service. The cumulative effect of these potential
  outcomes is unknown, but could have a material effect on the Company's
  financial condition, the results of operations and liquidity.

  The Company has no single customer concentration greater than 2% of assets
  and the impact on the Company from a single customer's non-compliance is not
  expected to be material. However, if a large number of its major customers
  encounter operating problems due to Year 2000 that cause them to default on
  their obligations, there could be a material impact on the Company due to
  higher credit losses and lower interest income.

  Management believes it is taking the necessary steps regarding Year 2000
  compliance with respect to matters within its control to ensure that the Year
  2000 issue will not materially impact the Company.


                                       -7-
<PAGE>

Item 3   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the Company's market risk during the
six months ended June 30, 1999. For additional information, refer to Item 7a
of the Company's December 31, 1998 Report 10-K.


                           PART II--OTHER INFORMATION

Item 6  EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits filed as part of this report are listed in the accompanying Exhibit
Index.

(b) There were no reports on Form 8-K for the quarter ended June 30, 1999.


                                       -8-
<PAGE>

                             PACCAR Financial Corp.

                                   SIGNATURES


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.






                                                 PACCAR Financial Corp.
                                                      (Registrant)









Date:  August 11, 1999                        BY:
                                                   _____________________________
                                                   A. J. Wold
                                                   President
                                                   (Authorized Officer)



                                              BY:
                                                   _____________________________
                                                   M. T. Barkley
                                                   Controller
                                                   (Chief Accounting Officer)


                                       -9-
<PAGE>

                             PACCAR Financial Corp.
                                  EXHIBIT INDEX


3.1    Restated Articles of Incorporation of the Company, as amended
       (incorporated by reference to Exhibit 3.1 to the Company's Annual Report
       on Form 10-K dated March 26, 1985. Amendment incorporated by reference to
       Exhibit 19.1 to the Company's Quarterly Report on Form 10-Q dated August
       13, 1985, File Number 0-12553).

3.2    By-Laws of the Company, as amended (incorporated by reference to Exhibit
       3.2 to the Company's Registration Statement on Form 10 dated October 20,
       1983, File Number 0-12553).

4.1    Indenture for Senior Debt Securities dated as of December 1, 1983 and
       first Supplemental Indenture dated as of June 19, 1989 between the
       Company and Citibank, N.A. (incorporated by reference to Exhibit 4.1 to
       the Company's Annual Report on Form 10-K dated March 26, 1984, File
       Number 0-12553 and Exhibit 4.2 to the Company's Registration Statement on
       Form S-3 dated June 23, 1989, Registration Number 33-29434).

4.2    Forms of Medium-Term Note, Series G (incorporated by reference to
       Exhibits 4.3A and 4.3B to the Company's Registration Statement on Form
       S-3 dated December 8, 1993, Registration Number 33-51335).

       Form of Letter of Representation among the Company, Citibank, N.A. and
       the Depository Trust Company, Series G (incorporated by reference to
       Exhibit 4.4 to the Company's Registration Statement on Form S-3 dated
       December 8, 1993, Registration Number 33-51335).

4.3    Forms of Medium-Term Note, Series H (incorporated by reference to
       Exhibits 4.3A and 4.3B to the Company's Registration Statement on Form
       S-3 dated March 11, 1996, Registration Number 333-01623).

       Form of Letter of Representation among the Company, Citibank, N.A. and
       the Depository Trust Company, Series H (incorporated by reference to
       Exhibit 4.4 to the Company's Registration Statement on Form S-3 dated
       March 11, 1996, Registration Number 333-01623).

4.4    Forms of Medium-Term Note, Series I (incorporated by reference to
       Exhibits 4.2A and 4.2B to the Company's Registration Statement on Form
       S-3 dated September 10, 1998, Registration Number 333-63153).

       Form of Letter of Representation among the Company, Citibank, N.A. and
       the Depository Trust Company, Series I (incorporated by reference to
       Exhibit 4.3 to the Company's Registration Statement on Form S-3 dated
       September 10, 1998, Registration Number 333-63153).

10.1   Support Agreement between the Company and PACCAR dated as of June 19,
       1989 (incorporated by reference to Exhibit 28.1 to the Company's
       Registration Statement on Form S-3 dated June 23, 1989, Registration
       Number 33-29434).

12.1   Statement re computation of ratio of earnings to fixed charges of the
       Company pursuant to SEC reporting requirements for the six-month periods
       ended June 30, 1999 and 1998.

12.2   Statement re computation of ratio of earnings to fixed charges of the
       Company pursuant to the Support Agreement with PACCAR for the six-month
       periods ended June 30, 1999 and 1998.


                                      -10-
<PAGE>
PACCAR Financial Corp.

                                  EXHIBIT INDEX


12.3   Statement re computation of ratio of earnings to fixed charges of PACCAR
       and subsidiaries pursuant to SEC reporting requirements for the six-month
       periods ended June 30, 1999 and 1998.

27     Financial Data Schedule for Article 5 of Regulation S-X, Item 601(c) for
       the six-month period ended June 30, 1999.

Other exhibits listed in Item 601 of Regulation S-K are not applicable.


                                      -11-
<PAGE>

                                                                   EXHIBIT 12.1

                             PACCAR Financial Corp.

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                     PURSUANT TO SEC REPORTING REQUIREMENTS
                             (Thousands of Dollars)

<TABLE>
<CAPTION>
                                                             Six Months Ended
                                                                  June 30
                                                              1999         1998
                                                            --------------------
<S>                                                         <C>          <C>

FIXED CHARGES
  Interest expense                                          $62,883      $53,661
  Portion of rentals deemed interest                            414          352
                                                            --------------------


TOTAL FIXED CHARGES                                         $63,297      $54,013
                                                            --------------------
                                                            --------------------


EARNINGS
  Income before taxes                                       $25,642      $23,749
  Fixed charges                                              63,297       54,013
                                                            --------------------


EARNINGS AS DEFINED                                         $88,939      $77,762
                                                            --------------------
                                                            --------------------

RATIO OF EARNINGS TO FIXED CHARGES                            1.41x        1.44x
</TABLE>

The method of computing the ratio of earnings to fixed charges shown above
complies with SEC reporting requirements but differs from the method called
for in the Support Agreement between the Company and PACCAR. See Exhibit 12.2.

                                      -12-
<PAGE>

                                                                    EXHIBIT 12.2


                             PACCAR Financial Corp.

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                       PURSUANT TO THE SUPPORT AGREEMENT
                         BETWEEN THE COMPANY AND PACCAR
                             (Thousands of Dollars)


<TABLE>
<CAPTION>
                                                              Six Months Ended
                                                                  June 30
                                                             1999          1998
                                                           ---------------------
<S>                                                        <C>           <C>
FIXED CHARGES
   Interest expense                                        $62,883       $53,661
   Facility and equipment rental                               471           453
                                                           ---------------------

TOTAL FIXED CHARGES                                        $63,354       $54,114
                                                           ---------------------
                                                           ---------------------


EARNINGS
   Income before taxes                                     $25,642       $23,749
   Depreciation                                              3,269         3,508
                                                           ---------------------

                                                            28,911        27,257
   Fixed charges                                            63,354        54,114
                                                           ---------------------

EARNINGS AS DEFINED                                        $92,265       $81,371
                                                           ---------------------
                                                           ---------------------


RATIO OF EARNINGS TO FIXED CHARGES                           1.46x         1.50x

</TABLE>

                                      -13-
<PAGE>

                                                                   EXHIBIT 12.3

                             PACCAR AND SUBSIDIARIES

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                             (Thousands of Dollars)

<TABLE>
<CAPTION>
                                                                 Six Months Ended
                                                                       June
                                                                 1999        1998
                                                               -------------------
<S>                                                            <C>       <C>
FIXED CHARGES
   Interest expense -
     PACCAR and subsidiaries (1)                               $ 87,004   $ 79,656
   Portion of rentals deemed interest                             8,874      7,277
                                                               -------------------

TOTAL FIXED CHARGES                                            $ 95,878   $ 86,933
                                                               -------------------
                                                               -------------------


EARNINGS
   Income before taxes -
     PACCAR and subsidiaries                                   $406,577   $321,313
   Fixed charges                                                 95,878     86,933
                                                               -------------------

EARNINGS AS DEFINED                                            $502,455   $408,246
                                                               -------------------
                                                               -------------------


RATIO OF EARNINGS TO FIXED CHARGES                                5.24x      4.70x

</TABLE>

(1) Exclusive of interest, if any, paid to PACCAR.


                                      -14-