Car wash noob
New member
Hello everyone,
What are the pros vs cons of buying vs building a carwash in Southern California?
What are the pros vs cons of buying vs building a carwash in Southern California?
Car Wash Forum
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Buying vs building
- Thread starter Car wash noob
- Start date
Buying is good if you are buying and improving. Can still be a good investment if you are buying an already improved operation/site but will need to be very thorough in diligence and value assessment. Buying is far quicker and less risky pre closing.
Building commonly takes 1-2 years from the day you find a site you like (maybe even longer in SoCal?). Typically need special use zoning and city approvals. You will need to put some cash up prior to even knowing if you are approved. Building gives competitors time to build sites or respond to you coming in. A lot can change in 1-2 years.
The safety in a build is you know what you are getting (new building and equipment).
With a build you get to make it exactly what you want.
It also depends on your background and balance sheet. Builds or existing (improved) operations are going to have a larger capital requirement. However, if you don’t have a car wash or mechanical background a rehab could also be a bad idea
Building commonly takes 1-2 years from the day you find a site you like (maybe even longer in SoCal?). Typically need special use zoning and city approvals. You will need to put some cash up prior to even knowing if you are approved. Building gives competitors time to build sites or respond to you coming in. A lot can change in 1-2 years.
The safety in a build is you know what you are getting (new building and equipment).
With a build you get to make it exactly what you want.
It also depends on your background and balance sheet. Builds or existing (improved) operations are going to have a larger capital requirement. However, if you don’t have a car wash or mechanical background a rehab could also be a bad idea
Greg_T
Well-known member
Just from my personal perspective, I'm a big fan of buying a business that has been a little neglected, but appears to have a reasonable foundation. You get the infrastructure already there, at least some customers to start with, and some revenue from day 1. If the business has been a little neglected or poorly managed by the previous owner, then you should be able to purchase as a suitably reduced price.
As MC3033 said, a new development is going to take a long time before it actually produces any income. I applaud those who have the patience, persistence and courage for a new development, but it's not for me. I certainly prefer to improve and build on existing operation.
As MC3033 said, a new development is going to take a long time before it actually produces any income. I applaud those who have the patience, persistence and courage for a new development, but it's not for me. I certainly prefer to improve and build on existing operation.
