**Exhibit 12.1**

 

**PACCAR Financial Corp.**

 

**COMPUTATION OF RATIO OF EARNINGSTO FIXED CHARGES**

 

**PURSUANT TO SEC REPORTINGREQUIREMENTS (1)**

(Millions of Dollars)

 
| ** **                                          | ** ** | **Year ended December 31** | ** ** |
|-----------------------------------------------------|------------|----------------------------|------------|
| ** **                                          | ** ** | **2004**                   | ** ** | **2003** | ** ** | **2002** | ** ** | **2001** | ** ** | **2000** | ** ** |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| FIXED CHARGES                                       |       |                       |       |   |   |   |   |   |   |   |   |
| Interest expense                                    | ** ** | **$**                      | **67.9**   |   | $ | 78.8 |   | $ | 114.7 |   | $ | 171.5 |   | $ | 205.5 |   |
| Less: Assumption by PACCAR of interest  expense (2) | ** ** | **—**                 |       | — |   | — |   | (17.0 | ) | — |   |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| Net interest expense                                | ** ** | **67.9**                   |       | 78.8 |   | 114.7 |   | 154.5 |   | 205.5 |   |
| Portion of rentals deemed interest                  | ** ** | **1.4**                    |       | 1.3 |   | 1.2 |   | 1.2 |   | 1.1 |   |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| TOTAL FIXED CHARGES                                 | ** ** | **$**                      | **69.3**   |   | $ | 80.1 |   | $ | 115.9 |   | $ | 155.7 |   | $ | 206.6 |   |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| EARNINGS                                            |       |                       |       |   |   |   |   |   |   |   |   |
| Income before taxes                                 | ** ** | **$**                      | **111.4**  |   | $ | 78.1 |   | $ | 45.0 |   | $ | 24.9 |   | $ | 54.0 |   |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| FIXED CHARGES                                       | ** ** | **69.3**                   |       | 80.1 |   | 115.9 |   | 155.7 |   | 206.6 |   |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| EARNINGS AS DEFINED                                 | ** ** | **$**                      | **180.7**  |   | $ | 158.2 |   | $ | 160.9 |   | $ | 180.6 |   | $ | 260.6 |   |
|                                                |       |                       |       |   |   |   |   |   |   |   |   |
| RATIO OF EARNINGS TO FIXED CHARGES                  | ** ** | **2.61**                   | **x**      | 1.98 | x | 1.39 | x | 1.16 | x | 1.26 | x |

 

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

 

(2)           In order tomaintain the ratio of earnings to fixed charges in 2001, PACCAR providedearnings support of $17.0 through the assumption of the Company’s interestexpense.

 

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