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Car wash income, best guess on foreclosure

1

1carwash1

Member
Looking at a foreclosed wash that has been sitting for a year. Initially, the bank refused to budge on their price so i walked. Now they want to dump it.
Anyway, the facility is a 6 & 1 with newer equipment. On a whim i went and pulled 5 years of water bills, no records available. The wash averaged 130,000 gallons per month over five years prior to closing last year. All my washes have been self servs so i really have no way of knowing what to expect in regard to revenue. Wash is located in southeast and priced at $1.25. I am unable to determine the amount of time give, no electric. If this was strictly a self serv it would be a no brainer. Can anybody give me a best guesstimate as to income? I figured probably around $8000/month. BTW, wash appears to have been lost to bank due to collateral issues.
 
1carwash1 said:
Looking at a foreclosed wash that has been sitting for a year. Initially, the bank refused to budge on their price so i walked. Now they want to dump it.
Anyway, the facility is a 6 & 1 with newer equipment. On a whim i went and pulled 5 years of water bills, no records available. The wash averaged 130,000 gallons per month over five years prior to closing last year. All my washes have been self servs so i really have no way of knowing what to expect in regard to revenue. Wash is located in southeast and priced at $1.25. I am unable to determine the amount of time give, no electric. If this was strictly a self serv it would be a no brainer. Can anybody give me a best guesstimate as to income? I figured probably around $8000/month. BTW, wash appears to have been lost to bank due to collateral issues.
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Based on the limited info you have, my first "guestimate" is that you are underestimating the revenues of this wash. My revenues far exceed your estimates and my water usage is only 25% higher. Did the bank have a deposit relationship with the prior owner? This might be your best way to get gross revenue information, unless former owner was taking cash out of business. One IBA should easily do $8k a month on it's own in most markets.
 
The bank has no prior financial records available. And the only other indicator of past performance is water usage. It's not really much to go on but all i have. I know it's virtually impossible to estimate revenue from water use, however, i was looking for a minimum benchmark. Thanks all.
 
Track down the owner, maybe he will provide some help. If you get it near the land value, it won't matter. Location, location, location
 
I guess it is a touchless automatic. What brand? A touchless auto will normally use between 50 to 100 gallons of water per wash depending on brand and features. I think 75 is a good average number. Industry averages say 1000 to 1500 auto washes per month average. If it was average at about 1250 washes per month you would have close to 100,000 gallons of water just for the auto and the other 30,000 for the SS bays. Most surveys are around $5000 per month per automatic. SS bays are around $1200 per bay. If you use industry averages you would be about $11,000 per month. Since this wash did not make it I would guess it does not do that much.
 
Etowah
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