**EXHIBIT12.1**

 

**PACCARFinancial Corp.**

 

**COMPUTATIONOF RATIO OF EARNINGS TO FIXED CHARGES**

 

**PURSUANTTO SEC REPORTING REQUIREMENTS (1)**

(Millionsof Dollars)

 

 

 
|                                                      |   | Year ended  December 31 |      |
|-----------------------------------------------------------|--------|-------------------------|-----------|
|                                                      |   | **2001**                |      | 2000 |   | 1999 |   | 1998 |   | 1997 |   |
| FIXED CHARGES                                             |   |                    |      |   |   |   |   |   |   |   |   |
| Interest expense                                          |   | **$**                   | **171.5** |   | $ | 205.5 |   | $ | 151.1 |   | $ | 125.4 |   | $ | 112.2 |   |
| Less:  Assumption by PACCAR of interest expense  (2) |   | **(17.0**               | )         | — |   | — |   | — |   | — |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |
| Net interest expense                                      |   | **154.5**               |      | 205.5 |   | 151.1 |   | 125.4 |   | 112.2 |   |
| Portion of rentals  deemed interest                       |   | **1.2**                 |      | 1.1 |   | 1.1 |   | .9 |   | .8 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |
| TOTAL FIXED CHARGES                                       |   | **$**                   | **155.7** |   | $ | 206.6 |   | $ | 152.2 |   | $ | 126.3 |   | $ | 113.0 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |
| EARNINGS                                                  |   |                    |      |   |   |   |   |   |   |   |   |
| Income before taxes                                       |   | **$**                   | **24.9**  |   | $ | 54.0 |   | $ | 61.6 |   | $ | 47.3 |   | $ | 57.0 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |
| FIXED CHARGES                                             |   | **155.7**               |      | 206.6 |   | 152.2 |   | 126.3 |   | 113.0 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |
| EARNINGS AS DEFINED                                       |   | **$**                   | **180.6** |   | $ | 260.6 |   | $ | 213.8 |   | $ | 173.6 |   | $ | 170.0 |   |
|                                                      |   |                    |      |   |   |   |   |   |   |   |   |
| RATIO OF EARNINGS TO  FIXED CHARGES                       |   | **1.16x**               |      | 1.26x |   | 1.40x |   | 1.37x |   | 1.50x |   |

 

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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.  See 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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