Home – New Forums Starting your journey Buying a car wash – advice please

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #1235201
    RickC
    Participant
    • Total posts: 2
    Up
    0
    ::

    Hi Everyone,

    I’ve been thinking of buying a hand car wash many years ago as I’ve always wanted to own my own business and more flexibility in my life. But when COVID and lockdowns came I decided to stay at my current job as it was too much of a risk at the time.

    But now the economy in Victoria is slowly recovering and so is my dream of owning my car wash. I’ve changed roles recently and despite being paid well I’m not happy where I am. I’ve seen a number of hand car washes within my price range and need some advice.

    What are the things I should look out for in this type of business? I know it can be very cash heavy, so validating the books may be difficult. Dealing with casual workers. Location and competition in the area, as well as reputation. Car washes can be seen as luxury, as cost of living rises business may fall.

    Thanks in advance!

    RickC

    #1235226
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::

    Hi And Welcome to Flying Solo It is great to have you!

    Thank you for joining our community and posting.

    First and foremost is how long the lease is and what the commercial property market is like in the area – I would want to calculate how long it would take to get my original capital back and then add many years onto that for deriving profit. Then… calculate how saleable the asset would be at the end which is also partly a product of how many years would then be left on the lease.

    I had an extremely successful wash near me then one day a chain opened literally 3 doors down and business was halved overnight.

    The number of cars passing is an obvious pointer to how busy you will be. For this reason, extremely busy corners are the go to if possible.

    I will add more posts if you post to this thread again – probably over this week so keep an eye out.

    And good luck!!

    Cheers
    ~Paul

    #1235295
    RickC
    Participant
    • Total posts: 2
    Up
    1
    ::

    Great advice, Paul. Thanks. Looking forward to more of your wisdom.

    #1235354
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::

    Going back to the re-sale price. It will be based on profitability and years left on the lease – this is because the new owner will want to make the same calculations you did.

    So getting a feel for the landlord’s approach is important if you can talk directly.

    Ideally, you’ll find somebody who is very hands off and has no future plans for the property. AND, somebody that will re-negotiate (extend) the lease because this is money in the bank and improves the saleability of your asset.

    Recently, developers, especially hi-rise and apartment developers have made some handsome offers which have swallowed up some prime sites, previously car washes. This is something to look out for.

    Next instalment to come – co-location with service stations or shopping centres.

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.