**EXHIBIT 12.1**

 

**PACCAR Financial Corp.**

 

**COMPUTATIONOF RATIO OF EARNINGS TO FIXED CHARGES**

 

**PURSUANT TO SEC REPORTINGREQUIREMENTS (1)**

(Millions ofDollars)

 
|                                                      |   | **Year ended  December 31** |      |
|-----------------------------------------------------------|--------|-----------------------------|-----------|
|                                                      |   | **2002**                    |      | **2001** |   | **2000** |   | **1999** |   | **1998** |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| FIXED CHARGES                                             |   |                        |      |   |   |   |   |   |   |   |   |
| Interest expense                                          |   | **$**                       | **114.7** |   | $ | 171.5 |   | $ | 205.5 |   | $ | 151.1 |   | $ | 125.4 |   |
| Less:  Assumption by PACCAR of  interest expense (2) |   | **—**                  |      | (17.0 | ) | — |   | — |   | — |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| Net interest expense                                      |   | **114.7**                   |      | 154.5 |   | 205.5 |   | 151.1 |   | 125.4 |   |
| Portion of rentals deemed interest                        |   | **1.2**                     |      | 1.2 |   | 1.1 |   | 1.1 |   | .9 |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| TOTAL FIXED CHARGES                                       |   | **$**                       | **115.9** |   | $ | 155.7 |   | $ | 206.6 |   | $ | 152.2 |   | $ | 126.3 |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| EARNINGS                                                  |   |                        |      |   |   |   |   |   |   |   |   |
| Income before taxes                                       |   | **$**                       | **45.0**  |   | $ | 24.9 |   | $ | 54.0 |   | $ | 61.6 |   | $ | 47.3 |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| FIXED CHARGES                                             |   | **115.9**                   |      | 155.7 |   | 206.6 |   | 152.2 |   | 126.3 |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| EARNINGS AS DEFINED                                       |   | **$**                       | **160.9** |   | $ | 180.6 |   | $ | 260.6 |   | $ | 213.8 |   | $ | 173.6 |   |
|                                                      |   |                        |      |   |   |   |   |   |   |   |   |
| RATIO OF EARNINGS TO FIXED CHARGES                        |   | **1.39x**                   |      | 1.16x |   | 1.26x |   | 1.40x |   | 1.37x |   |

 

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(1)                                  Themethod of computing the ratio of earnings to fixed charges shown above complieswith SEC reporting requirements but differs from the method called for in theSupport Agreement between the Company and PACCAR as shown in Exhibit 12.2.

 

(2)                                  Inorder to maintain the ratio of earnings to fixed charges in 2001, PACCARprovided earnings support of $17.0 through the assumption of the Company’sinterest expense.

 

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