During the 1996 portion of the 1996-1997 season Guerrero continued to drive for Pagan Racing in the No. 21 Pennzoil Reynard 95i-Ford Cosworth XB. At the season-opening True Value 200 at New Hampshire Motor Speedway Guerrero started 18th and finished 6th. Guerrero then drove a Reynard 94i at the Las Vegas 500K at Las Vegas Motor Speedway to start 9th and finish a season-best 4th. Starting at the Indy 200 at Walt Disney World Speedway the series began to use a different type of spec car with Guerrero driving the No. 21 Pennzoil Dallara IR7-Nissan Infiniti Q45 for Pagan Racing. The Infiniti engine was usually slower than the competing Oldsmobile engine and Guerrero's best race with the engine was the Phoenix 200 at Phoenix International Raceway, where he started 10th and finished 7th. At the Indianapolis 500 Guerrero qualified in 19th place and finished 27th after retiring due to a suspension failure after 25 laps with Guerrero running as high as 11th place. Starting with the Samsonite 200 at Pikes Peak International Raceway the team switched to the Oldsmobile Aurora Indy V8. Guerrero's best finish with the Oldsmobile engine came at the Pennzoil 200 at New Hampshire Motor Speedway with a 6th-place finish. At the season-ending Las Vegas 500K at Las Vegas Motor Speedway Guerrero suffered a major accident on lap 201 on the backstretch. Guerrero flipped coming off of turn 2 and flipped into the grass area next to the racetrack. He climbed out of his destroyed car just moments after the accident finished. Guerrero finished the season ranked 7th in points with 221 points.