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Brphelps

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I’m thinking about building a car wash and would love to hear your thought re which wash purchase. Ease of use, maintenance, technology, etc.

Are there turnkey washes? Will they build the entire wash for you? Do you recommend doing so?

I live in Uah

Any and all guidance is appreciated.
Thank you!
 

Waxman

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It sounds like you are in the beginning stages of your idea about the car wash business. I suggest the following: educate yourself first through traditional means; work at a car wash yourself ( GASP!) to see what the business involves. Go to the ICA show or regional trade shows. Attend the seminars and pay attention. Take notes. Read on-line articles and books. Study the business and learn the numbers. These things are an important part of your due diligence and are necessary for your success.
 

MEP001

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I’m thinking about building a car wash and would love to hear your thought re which wash purchase. Ease of use, maintenance, technology, etc.
What type of car wash are you looking to build?
 

Brphelps

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What type of car wash are you looking to build?
Thank you all for your comments, they’re very helpful.

I’d like to open a full service wash. The kind you can subscribe to a membership and if you don’t want the membership, you can purchase single. Would also like to have a section to do detailing.

I’ve seen the kind with roller and the kind with belts. Brushes and touch less.

I’d like to know which is the most reliable, least maintenance, fastest and simplest for customers.
 

Axxlrod

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Good luck getting a loan after this pandemic disaster.
 

Brphelps

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Tell us what you have done for your own research, please.
I have attempted to meet with several owners nearby with little success. I have also researched COGS, cost of different washes, cost of service contracts and cost of employees. I have also found some tentative investors.
 

Wash Edge

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I’m thinking about building a car wash and would love to hear your thought re which wash purchase. Ease of use, maintenance, technology, etc.

Are there turnkey washes? Will they build the entire wash for you? Do you recommend doing so?

I live in Uah

Any and all guidance is appreciated.
Thank you!
Mr. Phelps,

An Express Exterior Tunnel all the way, 100 to 120 feet, Do NOT do the full detailing. The Express Exterior Car Washes can have the unlimited monthly membership plan, its become quite popular, and its a good way or wash owners to have a set cash flow each month for fixed costs.

The Express Exteriors with the free vacuums are the ONLY way to go at this point, they are Crushing it. I have analyzed many new locations and run the financial proforma analysis, and you can get 1st-year cash on cash returns of 100% all day long.

They cost anywhere from $3mm to $4.5mm ALL IN with LAND, depending on land and site work requirements. This varies in many jurisdictions.

The best thing about Express Exterior vs Full-service detail is the number of employees required, you only need 2 to 3 employees at any time at the Express Exterior vs 15-20 depending at full service.

This is the biggest factor that makes the decision on type of car wash easy.

There is a reason 90% of new car washes are express exterior, its just way more profit for far less headaches.

I'd love to talk further, message me.

Thanks,

Adam
WashEdge - Car Wash Consultants
 

Rfreeman

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" I have analyzed many new locations and run the financial proforma analysis, and you can get 1st-year cash on cash returns of 100% all day long.

They cost anywhere from $3mm to $4.5mm ALL IN with LAND, depending on land and site work requirements. This varies in many jurisdictions. "

So the assumption here @ your low end $3 million total cost to get in @ estimated minimum 20% loan down payment = $600,000 therefore cash on cash 1st year return....NOI is $600,000 that's A LOT of cars.....not saying it CAN'T be done just saying that is one hell of a lot of cars, but then again that's why its a proforma and nothing never pans out to a proforma....maybe more, maybe less
 

Wash Edge

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" I have analyzed many new locations and run the financial proforma analysis, and you can get 1st-year cash on cash returns of 100% all day long.

They cost anywhere from $3mm to $4.5mm ALL IN with LAND, depending on land and site work requirements. This varies in many jurisdictions. "

So the assumption here @ your low end $3 million total cost to get in @ estimated minimum 20% loan down payment = $600,000 therefore cash on cash 1st year return....NOI is $600,000 that's A LOT of cars.....not saying it CAN'T be done just saying that is one hell of a lot of cars, but then again that's why its a proforma and nothing never pans out to a proforma....maybe more, maybe less
RFreeman,

Yeah, the express exterior business model is amazing. Its the only one I direct clients and partners into.

$600k NOI for a well-located newer style express wash is somewhat common.

You would be surprised at the average ticket values in many parts of the country, its pushing past $10 into $12 per wash territory, and you know the bottom line is great when this happens.

A local new wash with not even the best location is getting 16k washed cars per month, and doing very well...

Of course, you want to have very conservative proforma numbers, and there are sensitivity analyses we run, that allow for a conservative capture rate of the daily traffic numbers and ramping that up over time, as well as keeping the average wash cost at the lower boundary.

Even with the conservative numbers, the express exterior car wash returns are just so much better than most any other real estate, and I've developed many different types, Retail Shopping Centers, Publix, Chase, CVS, Office Buildings, Apartments, and car washes BY FAR are better.

The Express Exterior has changed the game with the low amount of employees needed, that was always the Achilles heel of the car wash business. you only need 2 to 3 people on a shift, sometimes 4 at peak times and weekends.

Thanks,

Adam
WashEdge - Car Wash Consultants
 

soonermajic

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A local wash, NOT even @ a good location, is washing over 530 cpd?!!! Sorry, bur that is exaggeration @ it's finest.!!!
Also, if you're gonna have a good spot & waah 600+ cpd, you ain't doing that with 2 employees!
Do I think EE is quite possibly lucrative, yes. But you talked about being conservative, & nothing you say, imho, looks conservative.

Now, answer some of his questions: MacNeil I hear is the best tunnel equipment.
But I don't have a tunnel, & may be wrong.
I'd say do brushes. Use a conveyor that pushes...but am interested in other guys advice
 
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