buying existing wash

[Glen]

Hello I have been wanting to buy a car wash for a while now I am 26 years old the town where I live has a population of about 24000 the wash I am wanting to purchase has 5 ss bays and 1 touchless automatic and 6 vacuums the problem is it is not currently for sale it is kept very clean and has an attendant but the equipment is older I know I don't have enough info here but how much on average would a well running wash this size make per year and what do u think it would cost to buy I can try to get more info just tell me what else would help thank you

 

[MEP001]

It could be making anything from $10,000 to $250,000 a year.

It could cost between $100,000 to half a million.

If you could get it for $100,000 you'd need to have a third of that up front.

 

[Waxman]

It could be making anything from $10,000 to $250,000 a year.

It could cost between $100,000 to half a million.

If you could get it for $100,000 you'd need to have a third of that up front.

this is correct; your question is far too vague. the way to proceed with placing a value on a business is by looking at 3 years of tax returns to start. you can also search for comparable sales of real estate, which can be tricky even for seasoned commercial appraisers. you can begin by going to the car wash and spending time there counting cars and looking at wash quality, services offered and how good everything works at the wash.

how often is the clean up crew there? how many pieces of equipment are o.o.o. or should be places o.o.o. because they do no function fully?

this isn't the type of question that there is a clear answer to for readers of this message board, so what we can do is tell you how to figure some things out for yourself so you can come to a realistic set of numbers. business is all about the numbers.

 

[I.B. Washincars]

Just let the owner know you would be interested if he wants to sell. He could be nearing retirement age and just needs a nudge. I fall into that category, my washes are for sale, but you can't tell it by driving by.

 

[MEP001]

o.o.o. = "out of order?"

 

[tdlconceptsllc]

Tell the man you want to know the Car Count through his automatic each month and for the last 3 years. Ask for his NET profit and Gross sales and look up the tax value online and ask him will he owner finance. Whats the Car count at the highway in front of it ? How many other washes are in the town?. How many express washes/Tunnels are around you? Look up his water usage at the local town municipality look at how many gallons of water being used tells alot if he is doing any volume or lying on his Tax returns to make them look good. Things to Consider when buying.

 

[robert roman]

Average for 5 + 1 is gross sales $180,000. Equation to “test” market value is 3 to 5 times gross sales.

So, $720,000 is typical “price” whereas replacement cost new is $1.0 million depending on value of real estate.

“….what do u think it would cost to buy….”

Probably more than you can afford or are willing to risk.

Because you are new-to-industry, bank may require 30 to 40 percent loan down payment with 3 to 5 year balloon.

Seller may finance or help finance but will seller be interested in financing a price that is $300,000 less than what it cost to build?

It’s tough to make a market when something isn’t for sale just as it’s a lot easier when there is a bargain price tag stuck on it.

 

[Waxman]

o.o.o. = "out of order?"

yes out of order = ooo

 

[soonermajic]

Proceed w/ extreme caution, & take your time. I needed more income, & bought a 3/1 wash. Seller showed me tax returns of $4k gross/yr, for 7 yrs! He wanted $150k, but desperate to sell, & I got it for $105k!! But, It was NOT A bargain. I was so eager, which was only surpassed by ignorance. Rushed into the deal, w/out realizing (through lengthy research)how bad of shape it was all in. I LUCKED out, & found a used LW4000, for $10k & a great installer who did the job for $10k! He had to fix/replace A LOT of parts!! Now, about finish uninstall / install of used but like new The Ultimate GinSan 3-bay Self Serve System (see other thread on SS link). Wash should now be worth about $175k, I'd think. It does not resemble old wash at all.
Breathe, slow down, & compare it to multiple washes, in your area.

 

[soonermajic]

I meant to type $47k/yr. However, now I know there's no Way on Earth, this wash was doing that. My IBA has doubled from previous IBA, & wash still won't do over $40k/yr. So instead of doing what should now be around $60k/yr, it's only doing about $40k. That's a helluva difference, my friend. Many swindlers in this business.....