Open a Car Wash.com

The question of building a brand new car wash or buying an existing one is one to take some time with. The general rule is that buying an existing car wash will be an easier and faster option but more expensive. On the other hand building a new car wash gives you the opportunity to find your own lot, choose the layout and setup, decide on a nationally recognizable franchise brand name or start your own. 

Buying an existing car wash can have its benefits. For one the business is already there and hopefully producing at least some cash flow. This option will obviously be much quicker method over building a new facility from scratch. You can assume (but verify!) that the property has all necessary utilities and is zoned to allow for a car wash. The local population most likely already knows it exists and they know what it does. This can work against you as much as for you. If the current owner has done a poor job of customer service or the facility is constantly in poor repair it may take some effort to change the reputation of the establishment after you purchase it.

You are going to need some basic information from the current car wash owner when you are considering buying the business: Why are they selling? What does the pro forma look like? Typically a three year history of the business performance will be gathered and analyzed. Is the business making money? Is the business deeply in debt to suppliers? What is the trend of the business; on the way up or going down? Your C.P.A., attorney and your loan officer (if you will be burrowing) will be involved in the pro forma of the car wash. Make sure to get as much information as possible and get all your questions answered fully prior to making any decisions.

What shape is the building and equipment in? A certified inspector should be utilized to examine the physical condition of the car wash buildings and equipment. You will quickly come to appreciate just how expensive some of the equipment in this industry is so make sure what you’re looking at is in good condition. Get a professional!