Would like to get everyone's opinions on what they think about the future, and car washing. I know there are a lot of people that have lost their jobs and probably a lot more that will loose their job. Then there is the Election to worry about. Is the car wash industry unaffected by which party holds office? or will it thrive no matter who wins the election? Until the Covid hit I was ready to pull the trigger on an addition and machine but can't get a good feeling about spending money with so much unknown in the future. What's your opinion?
Would you build/invest right now?
- Thread starter APW
- Start date
I haven't been in this industry long enough to know how it responds to parties in office, but bankers are puckered up right now and that will continue for awhile. They hate uncertainty. Even with stimulus moves and low interest rates, if the supply of funds is tight, that will have a broad effect on investment. I was looking at buying another wash for a refurb project but I've backed off.
The overbuilding of express washes is more threatening then the economy/COVID IMO. The industry is fairly resilient and isn’t the first thing people cut out since the cost is low. That being said I wouldn’t start a new project or get into a new industry till we can see the other end of this.
That being said, if you are a current operator and adding an addition to an existing wash you should go for it. For an existing operator who already has customers and real estate I’m not sure you have as much to worry about
That being said, if you are a current operator and adding an addition to an existing wash you should go for it. For an existing operator who already has customers and real estate I’m not sure you have as much to worry about
Rfreeman
Well-known member
I have been in the business 7 years so I haven't seen much but I just closed on my 3rd location that will be complete rehab project. Started cleaning the walls and the customer base is already appreciative and looking forward to the changes to come. I agree with Klean banks are starting to tighten up even though interest rates are awesome right now. I noticed on this purchase my bank had more questions for me and specifically asked me if my other locations had been hurt from COVID.
I think the bigger question is what impact have you seen thus far on your location from on all this COVID mess? If your revenue has stayed consistent then yeah I would say go for it! My revenue has even seen an uptick I think with everything that is closed or was closed there was nothing to do but wash your car.
I think the bigger question is what impact have you seen thus far on your location from on all this COVID mess? If your revenue has stayed consistent then yeah I would say go for it! My revenue has even seen an uptick I think with everything that is closed or was closed there was nothing to do but wash your car.
Waxman
Super Moderator
I'm gathering equipment and remodeling quotes for my automatic bay. My automatic wash is 15 years old and the time is right. To their credit, Superior car wash systems out of Phoenix, AZ, made a good quality wash. For a new investor like me ( 16 years ago), it was affordable and as reliable as you would expect a very affordable IBA to be.
My competitors both installed new friction machines within the last 5 years and they have pushed the upper price limit to $20!!!! My customer base is strong and growing. My detail shop is now sanitizing every detail package at a $30 add-on fee. Business is strong.
I think asking about the future of car washing is like asking about the future of dirt; there will always be car washing. People aren't going to stop washing themselves, their clothing, the dishes and the car. It's true.
My competitors both installed new friction machines within the last 5 years and they have pushed the upper price limit to $20!!!! My customer base is strong and growing. My detail shop is now sanitizing every detail package at a $30 add-on fee. Business is strong.
I think asking about the future of car washing is like asking about the future of dirt; there will always be car washing. People aren't going to stop washing themselves, their clothing, the dishes and the car. It's true.
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John J Spokas
Active member
Would you build/invest right now?
Replace old tired equipment? Yes
NTI? Research very carefully! Proceed with the utmost of caution.
Replace old tired equipment? Yes
NTI? Research very carefully! Proceed with the utmost of caution.
soonermajic
Well-known member
I have a monster site...but am worried to death, about pulling the trigger
washnshine
Well-known member
When I got started back in the 80’s, the ICA was putting out pamphlets and information geared towards the consumer saying that automobiles are people’s “second biggest investment” - this was to encourage keeping them clean at commercial car washes.
These days, with the younger generation not leaving the house as early, more renters and less home buyers or people waiting longer to buy a home, the automobile is probably the biggest investment for more people now than before. I am hopeful and optimistic that people do continue to care for their cars. Maybe some people will be holding onto them longer and see the long term value in maintaining the appearance of their cars.
These days, with the younger generation not leaving the house as early, more renters and less home buyers or people waiting longer to buy a home, the automobile is probably the biggest investment for more people now than before. I am hopeful and optimistic that people do continue to care for their cars. Maybe some people will be holding onto them longer and see the long term value in maintaining the appearance of their cars.
There are always good deals out there. The trick is knowing one when you find it. I think there will still be more existing places close. While express has hurt some (I have one less than a mile from me) not all have suffered. There is still a market to clean things that a conveyor can't, i.e. tall vans, box trucks, motorcycles, patio furniture, and boats.
soonermajic
Well-known member
Yes, thank you. My auto has no Tire brushes, only recessed tire blasters so it does duallys and also raised trucks with wide tires. Conveyors can’t do that. Also found out from my customers the express near me is scratching a lot of cars. Don’t think I’ll help them.
getnbusy
Active member
I must respectfully disagree that car washing isnt the first to go and people will always be washing. . I distinctly remember june of 2007 and the next few years to follow. The southeastern usa got hit really hard. I know that many factors played a part but when you gotta choose between light bill and wash the car, the car didnt get washed. For months and months and months.
Is now a good time to invest ? I say yes if youre a guy that knows how to make a deal.
Is now a good time to invest ? I say yes if youre a guy that knows how to make a deal.
JGinther
Zip-tie engineer
For those that weren't here during the 2008 crash... Many (too many) car washes were built in the early/ mid 2000's. They were mostly in-bay automatics washes with self-service bays. It was very similar to the express wash 'rush' currently taking place. Car washes were actually 'black listed' by most of the banking industry since this industry had so many high-leverage loans against new construction washes, and many were backed by real estate otherwise owned by the investors. Well all the backing evaporated, and much of the wash volume dropped significantly, hardly anyone could convince a bank to loan on a car wash in any shape or form. That meant that the only sales were cash sales at extremely discounted prices, and that comparables for a bank to loan on were non-existent. Because of this, we purchased a total of 9 washes from banks for much less than the dirt was worth at the time. I remember seeing nice washes on loopnet in areas like Georgia where is was even worse. You could buy a beautiful 6 bay self serve with 2 automatics and real estate for 50k! And you could choose which one you wanted!
Car_Wash_Guy
Well-known member
I bought one just like that. Original owners had $2.5mil into a 4/2 with a dog wash.
soapy
Senior Member
Another problem that I am seeing with some of the washes that are just now being built is that they are running into long delays getting equipment. I have 2 express washes in my town that should have been open by now but that are still waiting for their equipment to show up.
Greg Pack
Wash Weenie
New SS/IBA projects likely wouldn't pencil out. I would buy existing. Of the three washes I own now, only one would sell for (or above) replacement cost.
I had three nice washes I sold in 2005. The person I sold them to held them for about a year and flipped them. That buyer lost them to the bank in 2008. They were sold eventually for about 1/4th the cost of the new project.
I had three nice washes I sold in 2005. The person I sold them to held them for about a year and flipped them. That buyer lost them to the bank in 2008. They were sold eventually for about 1/4th the cost of the new project.
