What to do, what to do....

[Waxman]

another way to look at it depending on how many cars you do and what your financial situation is. if you were to borrow 200k for 10 years at 4.5% your payment would be 2,072 per month. based on having a new system and everything else in our lives going up in price you should be able to raise all your packages up by at least $2. if you wash 10,000 per year you would make an additional 1,666 per month. at this rate a new automatic almost pays itself off. if you plan on keeping this wash you will be glad you did it. i have a new razor being installed as we speak, i am going from $8,9,10,12 to $10,12,15,18

you have to start with the end number of your total budget and then create cash flow projections for the new bay with your new pricing and see how it pencils out. I insulated myself from the big monthly payment by refinancing at a time when interest rates were low so that my monthly payment is very affordable. I also raised my prices 46% which seems like a lot To me. But it's not about what I think it's about what the customer will pay.

 

[Waxman]

whether you buy new or used you will still need a lot of the same expensive things like wiring and plumbing and construction work. None of these things are going to decrease because you bought a used machine. I Vote for a new machine with new technology and a warranty and factory support and the help of all the other guys and gals with the same awesome new equipment. Why would you wanna be tinkering on some old car wash when you can be relaxing playing around on the Internet like me?

 

[New Washdog]

Hi! Just wanted to chime in and ask in your opinion how many cars/avg price per car a day would constitute a IBA to be busy enough to spend 240k?

I'm sure there are others on here more equipped to answer this question with a hard formula than I. There are so many variables that go into calculating whether a site is worth investing that kind of money. Site operations cost, water/sewer, cpd at the street and local wash pricing to name a few. Without that information it's impossible to know if the spend is warranted. Me personally in my area would need to see roughly about 40 cdp at $14 average to make it worth it.

 

[Strava]

Update, what did you decide to do?