Car wash valuation. Good or or not?

[Fluffybunny]

Hello guys,

I am considering purchasing a car wash and was wondering if it’s a good deal or not. Any input would be appreciated. Thank you

1. 2 automatic bays (touch free and pro touch). Equipment is Laser

2. The wash did $513,000 in gross profit in 2024

3. Its being sold with the real estate

4. There are no attendants and it has credit card pay stations

5. Wash was built in 2015 and in a good condition

6. Wash is located south of Boston, MA

7. Right now it nets around $415,000 (before mortgage payment)

The asking price is $2,700,000. What do you guys think?

 

[Roz]

Sounds like it is priced right based on the revenue and location. That said look at the equipment and see if it has good life remaining or if additional investment will be necessary. If still resided in the Boston area I would take a serious look at the place!

 

[traveler17]

3 to 5x the gross with the dirt is the normal from what I’ve always experienced. The numbers are good but as mentioned above check wash counts and have someone who knows what they’re looking at look the machines over.

 

[OurTown]

19% expense sounds low to me.

 

[Roz]

19% expense sounds low to me.

Not really. If well run and you do regular maintenance. As gross revenue goes up expenses to not increase at the same rate since the fixed expenses remain constant.

 

[traveler17]

19% expense sounds low to me.

That didn’t hit me, i just looked at the gross and asking. 100 percent correct. That seems really off!!!

 

[Fluffybunny]

Sounds like it is priced right based on the revenue and location. That said look at the equipment and see if it has good life remaining or if additional investment will be necessary. If still resided in the Boston area I would take a serious look at the place!

Thank you! I will take a better look

 

[Fluffybunny]

3 to 5x the gross with the dirt is the normal from what I’ve always experienced. The numbers are good but as mentioned above check wash counts and have someone who knows what they’re looking at look the machines over.

Will do. Thank you

 

[Fluffybunny]

19% expense sounds low to me.

They don’t have any employees and switched the credit card companies (saving $12,000 compared to 2023)

 

[AnalyticWash]

19% expense sounds low to me.

This.

Are you going to be able to run it with no employees? You are probably looking at a 40k expense here on a wash with that volume in major city minimum.

My guess is they are also doing all of their own maintenance and keeping the labor cost off the books.