Being a used car business owner is not a walk in the park. You need to keep a keen eye on your business and that means constantly monitoring your finances, your customer interactions, and the demand for your services. You also need to be able to navigate the murkiness of the used car market, and make smart decisions about the right vehicle to buy.

To succeed, you’ll need to have the right tools in your car-buying arsenal. Here’s what you need to know.

1. Know where to shop for used vehicles

Every year, thousands of used cars hit the road, and the first thing you need to do is figure out where to look for them.

Here are some of the best places to begin your research:

Flea markets. Flea markets are known for their high-inventory turnover rate, and almost always have a wide selection of vehicles. The downside? They often have higher prices.

Car auctions. This is an effective way to find used cars in phoenix that are in fair to average condition. The process involves locating a sale when the vehicle you want is running. When a buyer contacts you to purchase the vehicle, they’ll be happy to pay a fair price.

Private sellers. This is a great option if you’re looking for a specific vehicle. Private sellers are usually more willing to negotiate than the dealer, and they’ll typically match any of their competitors’ offers.

Sales representative. A sales representative will typically be able to locate vehicles in good to average condition, and may even be able to find a used vehicle that you can buy at a lower price than you could on your own.

2. Understand the used car market

Once you have located a potential vehicle, the next thing you need to do is to understand the market as well as you can. The next step is to find out more about the market conditions, and what variables are going to affect the resale value of your vehicle.

One of the most important characteristics of the used car market is the turnover rate. Typically, new vehicles are purchased by consumers and sold to dealers within a four-month period. During this time, the dealer will be fixing problems, washing the vehicle, removing all the paperwork, and offering it for sale to a new customer.