Penske Automotive (PAG) 10-K 2007 FY Annual report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Year Ended December 31,
	2007			2006			2005			2004			2003
Income from continuing operations before taxes and minority interests	$	197.1		$	203.3		$	188.8		$	176.4		$	131.9
Less undistributed earnings of equity method investments		(4.1	)		(8.2	)		(4.3	)		(5.8	)		(0.4	)
Plus distributed earnings of equity method investments		6.2			0.3			—			1.3			—
Plus amortization of capitalized interest		0.6			0.5			0.3			0.2			0.2
	$	199.8		$	195.9		$	184.8		$	172.1		$	131.7
Plus:
Fixed charges:
Other interest expense (includes amortization of deferred financing costs)	$	56.2		$	49.2		$	49.0		$	42.9		$	42.4
Floorplan interest expense		74.7			59.8			46.3			40.9			36.0
Capitalized interest		5.5			7.1			4.0			2.9			2.3
Interest factor in rental expense		50.2			43.7			35.3			27.6			22.9
Total fixed charges	$	186.6		$	159.8		$	134.6		$	114.3		$	103.6
Less:
Capitalized interest	$	5.5		$	7.1		$	4.0		$	2.9		$	2.3
Earnings	$	380.9		$	348.6		$	315.4		$	283.5		$	233.0
Ratio of earnings to fixed charges		2.0			2.2			2.3			2.5			2.2