Anyone Bought a Car Wash from Auction Site?
- Thread starter floppgean
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Rfreeman
Well-known member
Typically have an inspection day or days before the actual auction, go to it and be prepared or have someone that knows what they are looking at.
Watch the buyer premium fees typically a percentage of total sales price. Know what type of title you will get and that it will not be incumbered. Auction company should already have title opened with a title company or ask them.
Have your top number you are willing to pay for said site and stick to it. Don't go over just because of the excitement of the auction countdown and bids going up. Auctions are crap shoots especially if there are several people interested in the property but sometimes you can do well to.
In my other business, I brought the bank that foreclosed on the plant an offer of USD $1,950,000 (cash no finance contingency) from a client of mine. Written offer with proof of funds ready to negotiation or do a deal. The bank's auction company had done an appraisal on this plant and equipment and said it was worth $3.2 million. It ended up at auction, my client purchased the entire facility for USD $1,100,000 at auction
Good luck and stick to your number that you are comfortable with
Watch the buyer premium fees typically a percentage of total sales price. Know what type of title you will get and that it will not be incumbered. Auction company should already have title opened with a title company or ask them.
Have your top number you are willing to pay for said site and stick to it. Don't go over just because of the excitement of the auction countdown and bids going up. Auctions are crap shoots especially if there are several people interested in the property but sometimes you can do well to.
In my other business, I brought the bank that foreclosed on the plant an offer of USD $1,950,000 (cash no finance contingency) from a client of mine. Written offer with proof of funds ready to negotiation or do a deal. The bank's auction company had done an appraisal on this plant and equipment and said it was worth $3.2 million. It ended up at auction, my client purchased the entire facility for USD $1,100,000 at auction
Good luck and stick to your number that you are comfortable with
Thank you so much for sharing your insights and experience with auctions. It’s really helpful to hear from someone who has gone through the process and knows the ins and outs, especially regarding the inspection days, buyer premiums, and title details. I had no clue. I can definitely see how sticking to a top number is key -auctions can get pretty intense!
I’m not quite sure if I’m ready to jump into an auction just yet, but your advice is invaluable as I learn more about the process. I really appreciate you taking the time to share your story, especially the example of your client’s success. It’s good to see how well things can go if you approach it right!
Thanks again for the advice, and I’ll definitely keep all of this in mind as I continue on my car wash journey....Beep Beep!
Roz
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I got into the carwash industry by accident via an auction. Purchased a rundown wash (5/1) in a good location. Had to close in 15 days of the auction. I had my financing already in place prior to the auction. I visited the site, I knew the assessed value from state records, but knew nothing about the industry. Owner gave little info but it was clear that the owner used a lot of duct tape to fix things so I knew the place needed a lot of work. Eight years later the only original parts at the wash are the walls. I have renovated everything else including the heated floors. Two WW Razors later I have never looked back.
I was the high bidder on another wash but the broker could not get the seller to close the deal as they had very different ideas on the value. Place needed significant work too but the bank gave the owner more time to try to sell the place. It eventually sold for more than the hammer price and a lot less than the listing price. I heard the owner was pissed (at broker and probably at me) as the auction did not generate a price close to their ask so they did not come pack to me when they came to their senses.
I considered another auction of four locations earlier this year. Places sold for less than accessed value. I liked the places but travel distance was longer than what I really want at this stage of my life. The seller in this auction was very transparent with the info which helped to generate more interest than most auctions.
Bottom line is that you can get a good deal via an auction but need to visit the site, do your home, and then have a plan prior to the auction. Also do not get caught up in the "I have to win" or you may overpay. There are a lot of washes for sale so you can find a good place via traditional listings too - just be patience and thorough in your analysis. Good luck.
I was the high bidder on another wash but the broker could not get the seller to close the deal as they had very different ideas on the value. Place needed significant work too but the bank gave the owner more time to try to sell the place. It eventually sold for more than the hammer price and a lot less than the listing price. I heard the owner was pissed (at broker and probably at me) as the auction did not generate a price close to their ask so they did not come pack to me when they came to their senses.
I considered another auction of four locations earlier this year. Places sold for less than accessed value. I liked the places but travel distance was longer than what I really want at this stage of my life. The seller in this auction was very transparent with the info which helped to generate more interest than most auctions.
Bottom line is that you can get a good deal via an auction but need to visit the site, do your home, and then have a plan prior to the auction. Also do not get caught up in the "I have to win" or you may overpay. There are a lot of washes for sale so you can find a good place via traditional listings too - just be patience and thorough in your analysis. Good luck.
Thank you so much for sharing your experience—it's incredibly helpful to hear from someone who navigated the auction process successfully, even without industry knowledge initially. It sounds like you took a huge leap, and the fact that you’ve renovated everything except the walls over the past eight years shows real commitment. I’m curious, was there a particular resource or mentor that helped guide you through the learning curve?
It’s also interesting to hear about your second auction experience and the challenges with the seller. I understand having financing in place ahead of time is crucial, but I’m trying to wrap my head around how to prepare for situations where the seller’s expectations don’t match the reality of the auction. I have a feel that probably happens a lot.
I’ll definitely take your advice on staying patient and thorough—I don’t want to fall into the trap of overpaying! Thanks again for the insights, much appreciated. I am exploring all options in acquiring my first car wash.
It’s also interesting to hear about your second auction experience and the challenges with the seller. I understand having financing in place ahead of time is crucial, but I’m trying to wrap my head around how to prepare for situations where the seller’s expectations don’t match the reality of the auction. I have a feel that probably happens a lot.
I’ll definitely take your advice on staying patient and thorough—I don’t want to fall into the trap of overpaying! Thanks again for the insights, much appreciated. I am exploring all options in acquiring my first car wash.
Roz
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Tom Allen, from Kleen Rite, who passed away a few years ago was huge help and influence to get me started on the learning curve.
That said other owners on the forum and near my wash have been most helpful with information, ideas, advice, and sharing their experience. If you are more than 5 miles away you really are not considered competition. I came from the corporate world where it can be an unfriendly and competitive environment. I have found the carwash industry totally the opposite. Very friendly and people are most helpful. Always an exception now and then but rare.
for financing you have several options depending on your situation. An equity line of credit on a house, a brokerage account, or some other asset is a quick way to get financing. Rates are usually pegged to IBOR plus a percent spread. Another owner I know used their 401K to make a purchase but there are specific rules associated with that path so you need to consult a knowledgeable person about that avenue.
everything in life is a leap of faith. Marriage, buying a house, you name it. Just need some confidence and willingness to take a calculated risk. Good luck. Takes time to find the right situation.
That said other owners on the forum and near my wash have been most helpful with information, ideas, advice, and sharing their experience. If you are more than 5 miles away you really are not considered competition. I came from the corporate world where it can be an unfriendly and competitive environment. I have found the carwash industry totally the opposite. Very friendly and people are most helpful. Always an exception now and then but rare.
for financing you have several options depending on your situation. An equity line of credit on a house, a brokerage account, or some other asset is a quick way to get financing. Rates are usually pegged to IBOR plus a percent spread. Another owner I know used their 401K to make a purchase but there are specific rules associated with that path so you need to consult a knowledgeable person about that avenue.
everything in life is a leap of faith. Marriage, buying a house, you name it. Just need some confidence and willingness to take a calculated risk. Good luck. Takes time to find the right situation.
Thank you so much for sharing your experience and insights. It's great to hear how supportive the car wash community has been, especially compared to the corporate world. I’ll definitely keep those financing options in mind as I explore my path. Your words about taking calculated risks resonate with me—sometimes you just have to leap with confidence! I love that!!! Thanks again for the advice and encouragement!
VehicleInfo
New member
Hi everyone,
I recently bought a car wash from an auction site and wanted to share what I learned.
First, make sure to research the auction site and check reviews to ensure it's reputable. Before bidding, gather as much information as you can about the car wash’s condition and equipment. If possible, inspect the equipment during the auction preview.
Be ready for competition, as bids can go up quickly. Set a budget and stick to it! After winning, remember to factor in transportation costs, as you'll need to arrange that.
If anyone has questions or tips about the process, feel free to ask!
I recently bought a car wash from an auction site and wanted to share what I learned.
First, make sure to research the auction site and check reviews to ensure it's reputable. Before bidding, gather as much information as you can about the car wash’s condition and equipment. If possible, inspect the equipment during the auction preview.
Be ready for competition, as bids can go up quickly. Set a budget and stick to it! After winning, remember to factor in transportation costs, as you'll need to arrange that.
If anyone has questions or tips about the process, feel free to ask!
I created a mastermind group for car wash owners would you be interested in maybe being a speaker?
