Loan for the Equipment

[safari_CW]

Hello Everyone,

We are almost about to buy the carwash that has 4 self serve and 2 IBA bays. Self serve equipment is okay but IBA equipment needs to be upgraded. We are right now exploring and researching all the channels that we can get the business loan for the equipment. Our bank is only supporting us on the Mortgage transaction but not providing any loan for the equipment.

Can someone advise what all options we have for the loan on Equipment and the terms involved. What is the maximum tenure we can get the loan for (5/10/15/20)? What interest rate is considered decent ?

Thanks.

 

[Greg Pack]

Talk to your distributor-many mfgs. work with leasing companies.

 

[Car_Wash_Guy]

I just went through it for a new IBA. I had approval in less than a week. 4% for 60 mo

Bill Baker

COAST COMMERCIAL CREDIT

Canfield, OH 44406
Tel: (888) 428-0995
Cell: (330) 550-5335
BillB@CoastCC.com
www.CoastCC.com

 

[Kramerwv]

I’d look for a lender that would package the building and equipment into one loan and blend the amortization based on the real estate and equipment costs/values. Maybe finance the whole transaction over 10/12 years. If time is not on your side I agree with previous post about 4% range over 60 months (you might find someone willing to do up to 84 months around that same rate, again if time allows).

 

[safari_CW]

I just went through it for a new IBA. I had approval in less than a week. 4% for 60 mo

Bill Baker

COAST COMMERCIAL CREDIT

Canfield, OH 44406
Tel: (888) 428-0995
Cell: (330) 550-5335
BillB@CoastCC.com
www.CoastCC.com

Thanks for the lead. Can you tell me which IBA equipment you ended up with ?

 

[Car_Wash_Guy]

Thanks for the lead. Can you tell me which IBA equipment you ended up with ?

Petit 360

 

[safari_CW]

Petit 360

Nice! May I know how much you ended up getting it for ?

 

[Car_Wash_Guy]

Nice! May I know how much you ended up getting it for ?

Taxes, delivery, install. About $205k

 

[soapy]

I have used Frontier Leasing in Des MOines Iowa for several IBA purchases. Ron Angell was my contact.

 

[safari_CW]

Thank you for the contact. Do you know what is the maximum loan tenure they would do ?

 

[Car_Wash_Guy]

Thank you for the contact. Do you know what is the maximum loan tenure they would do ?

I believe I saw 84 mo

 

[soonermajic]

Red River Credit Union, Texarkana, Tx did my new Razor 5%/7 yrs. Razor TURN KEY was $90k.
They also did my new SoftGloss 1 yr ago, but only 6 yrs. Doing so good they added a year to this loan!

 

[AnalyticWash]

Taxes, delivery, install. About $205k

Plus 20k in interest over the life of the loan. So... $225k for your machine.

What equipment is it replacing? Did this price include dryers?

 

[Car_Wash_Guy]

Plus 20k in interest over the life of the loan. So... $225k for your machine.

What equipment is it replacing? Did this price include dryers?

4% is free money. I’ll gladly pay that and leave my money earning 15%+.

I feel looking at the purchase price alone doesn’t project the true situation.. I’m looking at the $2/wash price increase which will by itself beyond cover the payment. My top wash will be below my competitor while offering my highly demanded touchless wash at express exterior speeds.

And on top of that consistent revenue generated from monthly plans, new customers, etc my projections are it’ll be a game changer.

Does not include dryer’s. I have a Ryko OHD that I am 100% satisfied with. I put out a dryer car than the best express exterior in my market.

 

[AnalyticWash]

4% is free money. I’ll gladly pay that and leave my money earning 15%+.

I feel looking at the purchase price alone doesn’t project the true situation.. I’m looking at the $2/wash price increase which will by itself beyond cover the payment. My top wash will be below my competitor while offering my highly demanded touchless wash at express exterior speeds.

And on top of that consistent revenue generated from monthly plans, new customers, etc my projections are it’ll be a game changer.

Does not include dryer’s. I have a Ryko OHD that I am 100% satisfied with. I put out a dryer car than the best express exterior in my market.

Concerning Petit Speeds....

I have deeply analyzed Petit's #'s and I would not plan on washing more than about 15cph at best. Best case scenario you can hit 29cph with staged entrance/drying & every package configured to be no more than 4 passes (Dencar model). This is not realistic for most sites and to me it is hard to create perceived value, certainly at a $2 increase in price, without more wash passes.

 

[SuperShine]

Concerning Petit Speeds....

I have deeply analyzed Petit's #'s and I would not plan on washing more than about 15cph at best. Best case scenario you can hit 29cph with staged entrance/drying & every package configured to be no more than 4 passes (Dencar model). This is not realistic for most sites and to me it is hard to create perceived value, certainly at a $2 increase in price, without more wash passes.

Valid points. I’m looking at a twin or triple 360i in a longer building so you start washing the staged next car when the first one enters the drying chamber.
I’m concerned about the chemistry needed to support these speeds. Eliminating any dwell time is great for speed but how does it clean? It looks like the fast 360 setups begin with one generous high ph pass followed immediately with maybe a low ph Tri-foam directly over the high ph? Then high pressure oscillating rinse.

What chemistry are you fast 360i operators finding cleaning success with?

Thanks

 

[Car_Wash_Guy]

My bay is already set up to begin washing the next vehicle while previous one is drying. I plan on using using Blendco and doing 4 passes ( one direction front to back vice versa ).

 

[SuperShine]

How’s your Petit cleaning these days Car_Wash_Guy?
Are you still setup for four passes and Blendco?
Thanks

 

[Car_Wash_Guy]

Washing GREAT! Love the combination. I think I've gotten one complaint about cleaning in the last 6 months. With the Dencar tellers that side of my wash just churns out business with no real need for an attendant.

This spring I'll experiment with running the presoak through the foamers to save a pass. Right now I'm consumed by my tunnel project.

 

[SplashDash]

Nice! May I know how much you ended up getting it for ?

Who did you buy the 360 from?