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Looking to Purchase Existing Car Wash in Greater Toronto Area, Canada


New member
Dec 10, 2020
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Hi everyone,

I am looking into purchasing a self-service car wash in the Toronto area in Canada. I am hoping someone here has some experience in this market and can provide me some information on what typical sales are.

I do not have a specific property in mind, however most of the sites that are for sale are located in typically older, more industrial and commercial parts of the City. They typically border high traffic arterial roads. They range between $2M-$4M.

I would like to better understand the following questions (and any other information you think is useful):

1. Is there an optimal number of bays? A number above which returns are diminishing?
2. What is a safe/average gross income number to assume per wash bay on an annual/monthly basis?
3. Is it possible to get someone to walk the property and inspect the equipment before buying? Who could I reach out to for this? Does this service exist?
4. Is there a valuation rule of thumb (i.e. purchase prices with land should be x times gross/net income)?
5. Is there a "magic" cap rate? A number below which you walk away or something that is considered industry-average?

I really appreciate any input you may have. I am very new to this as you can probably tell.

Thank you all in advance.