Penske Automotive (PAG) 10-Q 2007 Q2 Quarterly report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Three Months						Six Months
	Ended June 30,						Ended June 30,						Year Ended December 31,
	2007			2006			2007			2006			2006			2005			2004			2003			2002
Income from continuing operations before undistributed earnings of equity method investments, amortization of capitalized interest, minority interests and taxes	$	63.4			58.4			88.1			99.8			199.4			189.2			177.0			124.4			81.7
Less undistributed earnings of equity method investments		(2.5	)		(2.0	)		(1.7	)		(3.1	)		(8.2	)		(4.3	)		(5.8	)		(0.4	)		(1.4	)
Plus distributed earnings of equity method investments		4.9			0.3			6.2			0.3			0.3			—			1.3			—			2.6
Plus amortization of capitalized interest	$	0.1			0.1			0.1			0.1			0.5			0.3			0.2			0.2			0.1
	$	65.9			56.8			92.7			97.1			192.0			185.2			172.7			124.2			83.0
Plus:
Fixed charges:
Other Interest expense (includes amortization of deferred financing costs)	$	12.9			11.4			31.8			23.4			49.2			49.0			42.9			42.4			38.0
Floorplan interest expense	$	19.5			16.2			35.7			30.2			61.6			47.3			40.9			35.9			27.4
Capitalized interest	$	1.3			1.5			2.7			2.6			7.1			4.0			2.9			2.3			2.2
Interest factor in rental expense	$	12.5			11.0			24.7			21.6			44.8			36.3			28.3			22.7			16.6
Preferred stock dividends	$	—			—			—			—			—			—			—			—			10.5
Total fixed charges	$	46.2			40.1			94.9			77.8			162.7			136.6			115.0			103.3			94.7
Less:
Capitalized interest	$	1.3			1.5			2.7			2.6			7.1			4.0			2.9			2.3			2.2
Preferred dividends	$	—			—			—			—			—			—			—			—			10.5
Earnings	$	110.8			95.4			184.9			172.3			347.6			317.8			284.8			225.2			165.0
Ratio of earnings to fixed charges		2.4			2.4			1.9			2.2			2.1			2.3			2.5			2.2			1.7