Want to hear some of your guys opinions im sure some have been in my position before. I have a carwash now that im thinking hard of using equity to renovate the auto bay , and freshen up the ss bays. Car wash works and does decent business but it needs some updates. I want this other location that might be for sale still so now im thinkin ok do i use equity to update mine now or use the equity to help purchase the 2nd location. And then i would have “more” equity in 2 washes instead of just 1, and then update both washes .. but havin 2-20 yr old car washes might be headache? The previous maintenance on both facilities isnt the greatest, but both do great small town business.
Buy 2nd location or renovate 1st wash...
- Thread starter ShineShed
- Start date
Car_Wash_Guy
Well-known member
I'd wait for more waste to be laid to the economy and buy the 2nd location for cheap. This destruction of the economy will wipe out many washes. You might be able to score a new EE for cheap when those first few mortgage payments of $20K come in and they're washing 30 cars a day for a few months.
This “corona pandemic “ is crazy thats a good point, figures this happens right as i want to expand. Im not doing much for business right now but was hoping this all shakes out soon and do something this summer on my wash or other location. I kinda wondered myself if id be able to buy the 2nd location cheaper if this continues but the owner has it paid off so im sure he doesnt care as much he is not hurting at all with it. Also he did want alot for it last i checked he said 585k. Nice building built in 2001 or 2002 3ss 2iba does close to 200k per year in sales he claims. Has hydrospray rainmakers for the autos. The carwashs seem to go for about 3times annual revenue around here...
wyatt
Active member
Not sure what the real estate is worth in your area but 585k for 200k in sales sounds like a reasonable price. Obviously there's a lot more to it however.
As far as renovating or buying, something my father always told me is that things may only go up for sale once every 10 or 20 years. If it's the right opportunity then you need to pursue it. Especially if it's your closest competition to your existing wash. That way you own more of the market and control local pricing. Then when nothing is for sale that you want, pursue renovations.
This is all assuming both washes are profitable as is.
As far as renovating or buying, something my father always told me is that things may only go up for sale once every 10 or 20 years. If it's the right opportunity then you need to pursue it. Especially if it's your closest competition to your existing wash. That way you own more of the market and control local pricing. Then when nothing is for sale that you want, pursue renovations.
This is all assuming both washes are profitable as is.
Makes sense Wyatt good way to look at it, the wash is not listed for sale im about the only one that knows it could be bought right now that i know of but that doesnt mean he wont list it. The 2nd location would make me the only good car wash within a half hour drive, well except 1 kwik star automatic in each town that the washes are in but self serve bays are heavily used in this area . I should talk to the bank this week and see what i can do I appreciate your input
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Assuming he’s ok with it being paid off might be wishful thinking. His retirement accounts might have dropped by 35% in the last couple months and spouse could lose a job. Just never know with this crazy environment
I was inches away from purchasing another site but decided against it well into negotiations.
The previous owners renovated a 7 bay self serve to the tune of 2 million transforming and extending one bay into a conveyor tunnel, one bay into an inbay auto, one bay into an equipment room, one bay into offices, all new equipment inside and out and I mean new, new car wash controllers, pay stations, pumps, air compressors, heaters, blacktop etc.
The new site was only open for two years.
Bank was in the process of repossession and was willing to take well under a million. I crunched the numbers but with the location and layout of the tunnel we decided against the purchase and thank God for that decision considering the predicament we're in with this COVID-19 closures.
The previous owners renovated a 7 bay self serve to the tune of 2 million transforming and extending one bay into a conveyor tunnel, one bay into an inbay auto, one bay into an equipment room, one bay into offices, all new equipment inside and out and I mean new, new car wash controllers, pay stations, pumps, air compressors, heaters, blacktop etc.
The new site was only open for two years.
Bank was in the process of repossession and was willing to take well under a million. I crunched the numbers but with the location and layout of the tunnel we decided against the purchase and thank God for that decision considering the predicament we're in with this COVID-19 closures.