Exhibit 12 Ugly Duckling Corporation Ratio of Earnings to Fixed Charges 1998 1997 1996 1995 1994 --------- --------- --------- --------- --------- Fixed Charges: Interest Expense............................. 6,904 2,774 2,429 5,328 2,870 Capitalized Interest......................... 135 229 0 54 142 Interest Factor in Rent Expense (a).......... 3,768 1,358 790 784 462 Preferred dividends.......................... 1,527 --------- --------- --------- --------- --------- 10,807 4,361 4,746 6,166 3,474 --------- --------- --------- --------- --------- Earnings: Earnings (Loss) from continuing operations... 5,916 16,165 6,777 (3,972) (2,328) Fixed Charges................................ 10,807 4,361 3,219 6,166 3,474 Interest Capitalized......................... (135) (229) 0 (54) (142) Preferred dividends.......................... (1,527) ========= ========= ========= ========= ========= 16,588 20,297 8,469 2,140 1,004 ========= ========= ========= ========= ========= Ratio of earnings to fixed charges........... 1.53 4.65 1.78 (b) (b) ========= ========= ========= ========= ========= For the purposes of these computations, "earnings" are defined as the sum of pretax income from continuing operations plus fixed charges of the Company and its subsidiaries, adjusted to exclude the amount of any interest capitalized during the period and dividends paid on preferred stock; "fixed charges" consist of interest on debt, amortization of debt discount, premium, and expense, and the portion of rents which is representative of the interest. - --------------------------------------------------- <FN> (a) One-third of rent expense is deemed to be representative of the interest factor. (b) Earnings did not cover fixed charges by $4.0 million and $2.5 million in the years ended December 31, 1995 and 1994, respectively. </FN>