Should I lease a new IBA system?

[andre3000]

Hi everyone! Thanks for the valuable information you provide on this forum. I'm looking to get into the car wash business and have approached some sellers of self-serve locations with no luck. They all seem to want $450k+ (land included) in my area, and updates are still needed for the lower-priced listings. This is outside of my budget without some seller financing.

I've decided to expand my search to look for vacant self-serve car washes and do the rehab myself. But I came across a vacant single-unit IBA location. Something I wasn't considering before due to price. It's just a shell with no equipment. However, it's on a busy street that gets about 25k+ cars per day. I think I can get a lease on the building, but before I get too excited, I wanted to see if it is best to lease a new IBA system when I'm starting out to keep costs down? If that's even possible. Or should I only buy the system outright? I have about $60k to spend, and from what I've been reading, IBA systems can run $120k+ for cost + installation. So I could be out of luck if the full $120k is needed upfront.

 

[MEP001]

I advise you against this project because it's more likely to ruin your credit than make you any money, but there are some equipment manufacturers that will lease their equipment. It's probably going to cost you a lot more than you expect in case it needs plumbing or electrical, so budget another $30,000 or so.

 

[Dan kamsickas]

Single bay Auto sites are very, very seldom successful. I would bet that if you could find the previous owners business records you'd see real quick why it's vacant.

 

[soonermajic]

 

[andre3000]

what do you think?

 

[MEP001]

You don't want to know what he thinks.

 

[STXCW]

As a new car wash owner, it will be very difficult for you to obtain a lease. Most companies want at least 2 years of prior experience as a car wash owner.

 

[soonermajic]

Find out who the owner is. See if he would consider a lease, or lease to own.
Are there any other tunnels nearby, & if so how busy? I think the busier the better. If there are tunnels, then put in a touchless. You can find decent touchless for a reasonable price. Id suggest find some distributors newrby, who may have a refurbished touchless for sale. Make sure it is in pretty good shape, get LED pkg, put on great products, & get it going.
If you want to buy, you are already ahead, cause electric, plumbing, the concrete, building & permits are all already done. This may be a savings of $300,000!

 

[WashFixer]

Single bay Auto sites are very, very seldom successful. I would bet that if you could find the previous owners business records you'd see real quick why it's vacant.

How do you feel about 2 bay auto sites?

 

[washnshine]

How do you feel about 2 bay auto sites?

I know you asked Dan, and he can chime in too, but two bay sites are much more common, and I think have much more potential for success. Two reasons- you can offer touchless and friction and please both preferences, or if you install two of the same, the potential throughput of 25+ cph seems much more favorable to success.

 

[WashFixer]

I know you asked Dan, and he can chime in too, but two bay sites are much more common, and I think have much more potential for success. Two reasons- you can offer touchless and friction and please both preferences, or if you install two of the same, the potential throughput of 25+ cph seems much more favorable to success.

I agree appreciate the insight

 

[soonermajic]

I agree appreciate the insight

But, if there are several tunnels nearby, they already offer friction
Later, if the car count shows it, you can add a 2nd touchless IBA.

 

[Dan kamsickas]

I know you asked Dan, and he can chime in too, but two bay sites are much more common, and I think have much more potential for success. Two reasons- you can offer touchless and friction and please both preferences, or if you install two of the same, the potential throughput of 25+ cph seems much more favorable to success.

Pretty much this except you're still looking at at least $500k+ in upfront equipment costs that still make it tough to pencil out. If someone builds a tunnel on top of you, you're toast.

 

[soonermajic]

Pretty much this except you're still looking at at least $500k+ in upfront equipment costs that still make it tough to pencil out. If someone builds a tunnel on top of you, you're toast.

Dan knows his stuff. But I bet in most areas, you could get a new IBA w/ Paystation & dryers for under $300 + $25 to install.