Rising gasoline prices are expected to peak at about $4 per gallon in May and will produce a "mild" effect on used-vehicle prices, analysts at NADA Used Car Guides say in a report released Tuesday.
But if tensions over Iran's nuclear program escalate into military action, "then it would be difficult to make a prediction" about how high gasoline prices would go and the effect on used-vehicle prices, says Larry Dixon, an analyst at the company.
Dixon says escalating gasoline prices are being pushed by the threat of a military conflict that would disrupt oil supplies rather than a loss of oil production.
"We are always making vehicle price adjustments based, in part, on our expectations for the price of gasoline," he adds.
Dixon said the company's economic-modeling scenarios do not factor in possible military action with Iran.Automobile News
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