Place A Business For Sale Posting 
Place A Business Wanted To Buy Posting
Share This Info:
Discussions > How Much Should I Expect To Make From A Car Wash Business?
How Much Should I Expect To Make From A Car Wash Business?
See All Discussions • See All Contributors • All New Discussions & Comments
Comments & Replies: 2 Views: 6937
Posted By: Peter Siegel MBA 
Topics: Buying A Business, Due Diligence Tags: business valuation, buying a business
Topics: Buying A Business, Due Diligence Tags: business valuation, buying a business
This is a hard question to answer specifically without any knowledge of the business. What kind of car wash it is (auto, self-serve, or full service)?, How many bays does the car wash have? Is there any other streams of revenue? But in general I can give you an idea based on nationwide averages. For the purpose of this discussion we will focus on automatic and self-serve.
Automatic Car Wash Averages:
Average number of cars washed annually: 19,947
Average sale per vehicle: $6.34
Average profit per vehicle: $4.35
Average annual profit: $86,531
Average annual revenue: $139,000
Average Self Serve Statistics:
Average monthly revenue per bay: $1,489
Average percent of time bay is in use: 10%
Average annual revenue for a 2 bay operation: $41,000
As you can see there is money to be made in the car wash business. You will have to do your due diligence when it comes to choosing a specific business as these are just industry averages, but you shouldn't have too much trouble finding car wash that will give you a healthy return on your investment.
Automatic Car Wash Averages:
Average number of cars washed annually: 19,947
Average sale per vehicle: $6.34
Average profit per vehicle: $4.35
Average annual profit: $86,531
Average annual revenue: $139,000
Average Self Serve Statistics:
Average monthly revenue per bay: $1,489
Average percent of time bay is in use: 10%
Average annual revenue for a 2 bay operation: $41,000
As you can see there is money to be made in the car wash business. You will have to do your due diligence when it comes to choosing a specific business as these are just industry averages, but you shouldn't have too much trouble finding car wash that will give you a healthy return on your investment.
Contributor: Timothy Cunha JD: Business Broker, SF Bay Area
This is a good topic to discuss "hidden" or unreported cash income.
A car wash is one of the businesses that are sometimes attractive to potential buyers because they think a lot of cash changes hands and a lot can end up in the owner's pocket without paying state and federal taxes.
BEWARE!
A seller who is going to tell you all about the taxes he hasn't paid on cash is telling you that he routinely steals, cheats, and lies -- but, he wants you the buyer to believe him when he tells you about his business. How trustworthy is that?
Material non-reporting of income distorts the entire system.--Those of us who are honest about our earnings are consequently paying a disproportionately higher amount of government expenses. How fair is that?
And, taking over a business with the intention of becoming an immediate tax felon can cost you bundles in legal fees, fines, and lost income, no to mention the prospect of looking through bars for several years. How smart is that?
Car washes, laundromats, vending routes ... these can all be good businesses. But, they must be sound businesses based on actual reported income, not based on being a criminal enterprise.
A car wash is one of the businesses that are sometimes attractive to potential buyers because they think a lot of cash changes hands and a lot can end up in the owner's pocket without paying state and federal taxes.
BEWARE!
A seller who is going to tell you all about the taxes he hasn't paid on cash is telling you that he routinely steals, cheats, and lies -- but, he wants you the buyer to believe him when he tells you about his business. How trustworthy is that?
Material non-reporting of income distorts the entire system.--Those of us who are honest about our earnings are consequently paying a disproportionately higher amount of government expenses. How fair is that?
And, taking over a business with the intention of becoming an immediate tax felon can cost you bundles in legal fees, fines, and lost income, no to mention the prospect of looking through bars for several years. How smart is that?
Car washes, laundromats, vending routes ... these can all be good businesses. But, they must be sound businesses based on actual reported income, not based on being a criminal enterprise.
| Helpful Resources To Assist In Selling And Buying California Businesses |
 |
Mani Singh, Business Broker, Riverside, San Bernardino Counties I have successfully represented clients sell & acquire multitude of businesses ranging from Gas Stations, Liquor Stores, Markets, Super Markets, Smoke Shops, Postal Stores, Restaurants, General Retail, Auto and Construction related. Phone me for assistance with selling or buying at 951-296-7646 Cell |
 |
Rick Carlson, Business Broker - Southern California You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939. |
 |
Janet Carrera: Escrow & Bulk Sale Services - San Francisco Bay Area Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741. |
 |
Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972. |
 |
Chris Seaman, Business Broker - San Diego County Area Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info. |
 |
Diane Boudreau-Tschetter: Escrow And Bulk Sale Services - California California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100. |
 |
Helen Yoo, New Century Escrow - Escrow Services In Southern California New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151. |
 |
Joe Sandbank, Esq: Legal Services For Buyers, Sellers, Brokers - Throughout California I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process. Please phone 916-672-8018 for more info. |
| Related Articles, Events, Blog Posts, Discussions, Videos, Interviews |
 |
Buying A Car Wash - Three Successful Types Of Car Washes To Consider Buying
One of the most popular buyer requests are car washes. Considered easy to run, the number of cars on the road continues to increase, while it doesn't seem that car wash installations are being added to keep pace. Peter Siegel, MBA (BizBen ProBuy Program & Financing Expert) at 925-785-3118 explains. |
 |
Buying A Car Wash: How Much Money Can I Make From a Self Serve Car Wash?
How much money should you expect to make when buying an automatic car wash? While every business is unique, on average, buying a self-serve car wash can be a great investment and income opportunity. Peter Siegel, MBA (BizBen ProBuy Program Director and Business Purchase Financing Expert) explains. |
 |
Why Deals Fall Out: Unrealistic High Asking Prices Are Usually The Reason
The unfortunate truth is that approximately 50% of all small business sales transactions fall out. While failed transactions can happen for a many reasons, Peter Siegel, MBA (BizBen Director & Business Purchase Financing Expert) discusses the main reason deals fall through; steep asking prices. |
 |
Is There Such A Thing As Paying Too Little When Buying A Small Business?
We all understand the idea of paying too much for a small business. But is there such a thing as not paying enough? That seems like an odd notion, but I'm familiar with situations in which a buyer acquired a small business for a figure substantially under what probably was market value. |
 |
How Many Listings Is Too Many For One Broker To Handle? Is It 5? 10? 20?
Peter Siegel, MBA in this Vlog/Podcast discusses how many listings is too many for one business broker to handle at one time. Is it 5 is it 20? I recently had a coaching call with one of my BizBen broker clients who asked that question this week. There are many factors that go into the answer. |
 |
Why Isn't My Business Selling? 6 Great Questions To Ask Yourself For Answers
It can take months, sometimes longer to sell a small business. Here are 6 questions from Peter Siegel, MBA (Business Purchase Financing Expert, ProSell Program Advisor with BizBen) at 925-785-3118 to ask yourself to help you determine why your small to mid-sized California business isn't selling. |
 |
Sellers Ask: How Long Should I Wait For The Buyer To Do Their Due Diligence?
Business sellers & buyers ask the question in the buying process-how long should I ask for due-diligence when buying a small business? The answer really depends on several factors. They include: type of business, demand for the business, complexity of the business. Advisors weigh in on this topic. |
 |
Tips For Faster SBA Loan Approvals For California Small Business Purchases
In this article on BizBen, business purchase financing advisor and SBA loan broker, consultant Peter Siegel (Business Purchase Financing Expert/Advisor & the ProBuy Program Director at BizBen) at 925-785-3118 shares his views of getting SBA loan financing faster for business purchase financing. |
| See All News, Tips And Events |
Topics:
Business BrokerageBusiness OpportunitiesBusiness FinancingBusiness ValuationBuying A BusinessDeal StructuresDue DiligenceEscrow Closing IssuesFranchisingLegal IssuesLegislative IssuesMergers AcquisitionsNon DisclosureSelling A BusinessRecent Discussions:
Recent Contributors:
Popular Discussions:
Popular Contributors:
Tags:
Absentee RunAdjusted Net IncomeAdvertisingBroker CooperationBusiness BrokersBusiness ValuationBuyer RepresentationBuying A BusinessDeal StructuresDue DiligenceEscrow Bulk SalesEventsFinancingFor Sale By OwnerFranchisingHome BasedInventoryLandlordsLegal IssuesLegislationLiquor LicenseNon DisclosuresNon SBA LoansOpen ListingsPocket ListingsSBA LoansSeller NotesSelling A Business
500 New & Refreshed Detailed Postings Daily