Much like the prediction Black Book released last week, the National Automobile Dealers Association is also expecting used-car prices to spike in the wake of Hurricane Sandy after the supersorm destroyed thousands of vehicles.

In fact, NADA is predicting that as a result of the storm, December prices of used vehicles up to 8 years old will end up being anywhere from 0.5 percent to 1.5 percent higher than earlier projections.

"The loss of used-vehicle supply and the increase in replacement demand after Hurricane Sandy will have the greatest impact on used-vehicle prices in December," said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide.

And the executive also explained that dealers should look to the flood damage caused by Hurricane Katrina in 2005 and the effect it had on the industry to get an idea of the impact that Hurricane Sandy could have on used-vehicle prices.

During the 2005 storm, the reduction in the supply of used vehicles and increase in demand resulting from Hurricane Katrina led to used-vehicle prices increasing by as much as 3 percent, or $309, over the four-month period following the storm's landfall, NADA reported.

"Although Sandy's reach encompassed an area with a greater population density than Katrina, the number of vehicles damaged by flooding doesn't appear to be as high as the number lost to Katrina," Banks added.

NADA is supported their predictions by initial damage estimates for Hurricane Sandy, which place insured losses for the storm between $10 and 20 billion, according to EQECAT Inc., a catastrophe risk analytics company based in Oakland, Calif.

The total loss is projected to be between $30 to 50 billion, a number far less than the total cost of Hurricane Katrina ($145 billion), according to AIR Worldwide and the National Oceanic and Atmospheric Administration.

"Current estimates for insured and total losses place Hurricane Sandy on average at about one-third of the cost of Hurricane Katrina," Banks said. "The destruction wrought by Hurricane Sandy was most severe in New York and New Jersey, and supply and demand disruptions will be especially severe in these states."

So the spike in used prices should be felt the most in Northeastern dealerships.

Interestingly, New York and New Jersey rank in the top 15 U.S. states in terms of overall vehicles in operation and new-vehicle dealerships, and tout large populations and high-density areas.

"Regionally, the concentrated damage that occurred in New Jersey and New York mean that used-vehicle prices, particularly for import and luxury cars, will most likely increase beyond NADA's national level expectations," Banks said.

And are there any particular segments that will see higher price spikes than others?

Banks explained that prices for large pickup trucks should also increase towards the high end of NADA's predicted range “as contractors and other service-related professionals will need to replace vehicles required to support their livelihoods and because supply for the segment is already constrained.”

For more information on the expected used-price hike as well as commentary from Edmunds.com and Black Book, see the Auto Remarketing story here.

In other news from NADA, the organization has pledged $1 million to jump-start a national fund-raising campaign for the Emergency Relief Fund of the National Automobile Dealers Charitable Foundation.

"This is the time for dealers across the country to step up and help those in the Northeast most affected by Hurricane Sandy," said Bill Underriner, NADA chairman and a dealer from Montana.

The fund provides financial assistance to dealership employees affected by natural disasters.