Possible purchase

[Halljo]

Hello all,
I am new to the forum and looking for some feed back. There is a 4 SS and 2 in bay automatic for sale about a half hour from me. It has the old lazerwash 4000’s and all the pumps are Cat. The equipment looks to be all quality built but it is just old. They said they are running about 25000 cars through the automatics a year, not including the SS and carpet cleanings a year. The property sits on 2.8 acres and looks like enough room to maybe add some storage building in the back. The asking price is $899,000, is this in the ballpark or do you think this is way off base. The wash does need a couple small things done but most of it appears to just need a good cleaning. I appreciate any feedback you guys would have.
Thanks

 

[charliewash59]

Ask them for more information - land analysis, financials, history....... - seems high. I have found after 2.5 years in car wash businesses - equipment repairs can really change the $$$ picture

 

[Halljo]

Will do, he wants proof of funds before I can see his financials. I was planning on taking the books to an accountant and researching the real estate.
Thanks

 

[MEP001]

They said they are running about 25000 cars through the automatics a year

That's an incredible number. That's 30-35 cars per bay on average, ought to be about $10,000 per bay per month. That should be really easy to verify in a day just watching from across the street. That asking price seems inline with their claims. A big downside IMO is that since they prep every top wash, it's attended full time, which is a pretty big expense.

The gantry on one of those machines is just about rusted through. Pretty normal for one of those, pretty expensive to replace.

 

[tdlconceptsllc]

This wash has a awesome Self serve pumpstand that's right up my alley "southern pride will last a very long time if properly taken care for and the Ginsan meter boxes are fairly new & nice. As for the Lasers you need to replace them with WashWorlds and new Paystations and a heavy duty clean up job. The asking price probably is correct & property value goes into play also.

 

[Halljo]

There is no attendant on site and I do not believe they do any prepping. After some research on here about the lazerwash 4000’s I seen the rusting issues. If the gantry is where the track rides back and forth that appears to still be solid, I’m not sure if they paint it ever year to keep corrosion down or if they have been replaced. I will have e to spend a day across the street and see what kind of traffic they are getting.
Thanks

 

[Halljo]

They seem to take care of their equipment, have a cabinet full of spare parts and the inside is kept clean.

 

[Halljo]

Is a washworld razor a compatible retrofit for the lazerwash? I would want something that is an easy change out with not a lot of extra cost.

 

[OurTown]

I'm also about a half hour from that wash and looked at it briefly. I think it nets about $100K per year and the asking price seems somewhat reasonable at first glance. It looks like a well built wash in a good area. My main concerns are the $300K one might put into two new automatics/auto cashiers and the brand new Magic Tunnel express exterior wash that opened 3 months ago in that town of 20K. My guess it that it is taking a toll on revenue of this wash right now.

 

[Halljo]

I wondered that but was thinking that the other wash is across town and not near the residential areas. You may be right about taking their business though.

 

[OurTown]

I wondered that but was thinking that the other wash is across town and not near the residential areas. You may be right about taking their business though.

I'm sure the wash that is almost right next door to the new EE is taking a much bigger hit.

 

[Halljo]

EE? Not sure what that is.

 

[MEP001]

Express Exterior, where there's usually free vacs, no hand detail, usually just one or two loaders/preppers.

 

[Halljo]

Oh ok, thanks

 

[soonermajic]

Yeh, Id set across the street several different days. I sat across about 5 days on my new purchase.
Tdl is correct. Awesome SS equipment & GinSan meterboxes. The LW4000s are worn out. Check out their last 2 yrs financials & MAKE SURE you get the past 90 days!
If they won't give past 90 days, that tells u all u need to know, & it's a deal breaker.
If u buy it, ask your WW distributor if he'd give a discount on 2 Razors, & buy used paystations.
But set across the street on different days is 1st order of business. Use his LW Automatics w/ a few of your cars, & see how good/bad it does.

 

[Halljo]

Great thanks for all the input, now to sit and watch!