All Forum Posts by: Dave Carpenter

@Ronald Rohde, while I’m not expert, what I’ve read and seen is that car washes are pretty resistant to economic factors. It’s broadly considered a spur of the moment purchase, thus not tightly tied to the economy. I would argue that in many markets washes have the opportunity to increase sales through customer service, marketing, or product changes in the same way an apartment building can increase rents. I’ve had some success with that myself (raise prices and see average wash price go up). Either way increases revenue. 

I think a function of why it’s valued a bit differently is because it is a more uncommon and unknown market. SBA even sees a wash and property as a more unique asset and adjusts their loan accordingly. As I was told, this is in large part because there are not many alternative options for a car wash building. Certainly compared  to a warehouse or office space.

Just a few of my opinions.

In short: the car wash will be more work per day, week and month. Everything you described pencils out in a basic sense. 

From a work perspective, it’s a little different. You’re fixing broken hoses, pumps, etc. Emptying garbages. That kind of thing, the good news is most days (not all) you can decide when you or someone else goes to check on stuff. Pros and cons.

Another thing to consider is financing. Car washes can be harder to get financing for. Plenty of wash owners use SBA loans which can help you with less of a down payment, but often are tied to the prime rate so it’s a rate that can rise and fall. I got the joy of closing on mine and almost immediately watching the prime rate, this my loans interest rate rise. 

I’d say dig in. Cash flow can be better than a traditional apartment building. 

@Marcus Auerbach 1% appreciation per month, that’s crazy, and awesome!

@Seth A. Weber

I’d reach out to local car wash owners if you want to rent the wash out. It’s probably something that needs to be somewhat actively managed. May only take an hour or two each day, but is certainly a part time job. For a guy that has a wash a mile away, it might be a nice little opportunity since they know that industry anyways and are in the area.

@Elmer Glick yup, there a somewhat young, but very smart and kind company. I met them at the car wash show a couple years ago and was impressed with the tech and their drive.

@Elmer Glick

Congrats on the purchase! I’m glad to hear it’s cash flowing well.

We have laser wash 4000 systems with Hamilton kiosks. Our systems are from 2002 and are getting a bit long in the tooth. However there so easy to work on, and everyone I talk to says they are solid machines (in my head I think Honda Civic or Toyota Camry).

We have a subscription service through coinless mobile which allows people to pay from their phone. It’s not been marketed a ton at this point, but we are seeing steady sign ups. There’s a few other companies that offer similar services.

@Matt O'Brien you are on the right track. I’d figure out who the local chemical suppliers are and give them a call. They are the experts in the area and the demand. Their goal obviously would be to get you to build and then sell you wash chemicals, which is great because the goals align.

You could also reach out to one of the equipment suppliers. Sonnys is one of the biggest and begin a conversation about building the site and equipment.

For most washes these days, especially a higher volume tunnel, you are looking at a couple

Million dollars.

There’s also a huge Facebook group called talkcarwash that would have a ton of info and connections based on your area.

While the area may be under served, my challenge would be to understand why there isn’t a wash there yet. There may be a good reason that’s not obvious.

Good luck!

I own a couple automatic washes. For a business like you described, you are buying a part time job. An hour or so each day, with some days requiring more when something breaks. 

What are total sales for that business? i'd aim for sales to be 1/3 to 1/5th of the purchase price.  Not sure if Cali is different, but thats probably a good place to start. 

Very smart to talk with the equipment/chemical rep! I would for sure ask to turn on the systems, and plan to make a day of it. I would ask the rep if he is willing to be onsite for that and help get it running. If it can. It is not just turning the water on. You will want to test soaps to make sure there aren't underlying problems. There's a lot to getting soap out of wand in a way that looks good and cleans cars. 

If you can turn this on as a car wash (also, is there even still demand, or did someone open a new self serve down the road?) and get some income coming in, it will allow you time to decide what to do with the lot and building. Though even if it worked, the offer should really only change in terms of the value of the equipment (which could be a few thousand). With no business, theres not many actuals there. Its also likely that if it shut down, there was a reason and it may have a bad reputation. Either way, after 6 years, people have forgotten about it. 

One of the challenges, is that car washes are more or less a single use property. Its tricky to convert the structure to something else. If the location is good, that could be worth something. Its also possible if there is demand, you could start the business back up. 

Talk to the rep about converting 1 or 2 bays to automatic washes. That will allow for more revenue, though there is certainly a 6 figure cost to do that. Lean on the rep, especially if he knows what he's talking about. He will be a critical member of your team.

Finally, jump on the Talk Car Wash facebook group and reach out to people in Charleston. The group has thousands of car wash owners and operators. Someone there will know something that you will want to know. 

Good Luck!

@Steve Cheslock I’m not super handy, and had no real experience. I’m logical, and know how to use basic tools. I’ve found that there are things I can do pretty easily, and other things that I might be able to figure out or do, but it would take me many hours to figure it out or a few hundred dollars to get the tools. Foe those items I’ve chosen to pay a technician to do it. These guys work on car wash equipment all day and know what to look for and how to fix it correctly and more quickly.

The question is what’s your threshold. If you don’t know how to use a wrench, you will spend a lot on maintenance.