Reasons That Car Wash Owners Sell

1.  New competition that has arrived within the last three years.  Normally it takes a two to three years for the revenue of a new car wash to grow and stabilize, so the full effect of a new car wash competitor might not be immediately felt by an existing car wash.

2.  Expectation of new competition, either from new similar car washes, extensive refurbishment of existing car washes in the area, or from new car washes of the same type or of a type that might substitute for the subject car wash,  (i.e., a new exterior only near an existing self-serve, or a new flex-serve near an older full-serve).   Check with the equipment dealers, chemical salesmen, city permitting department, etc. to determine whether an existing car wash might be faced with new competition soon.

3.  Expectation of new road construction in front of the car wash.  The disruption of revenue might not be as bad if the car wash is on a corner lot, if there is good ingress and egress from both streets, and if both streets will not be torn up at the same time.  New road construction is a strong motivator for selling a car wash.

4.  Expectation of new underground utility work.

5.  Closing of nearby major retail stores is expected, such as a Wal-Mart or large grocery store closing or moving.

6.  When the seller has a floating-rate car wash loan, expectation of higher interest rates in the near to intermediate future.
7.  Expectation of a significant increase in car wash operating expenses, such as chemicals, payroll taxes, insurance, sales taxes, property taxes, utilities, etc..

8.  Cost and personal effort to bring the car wash to state-of-the-art is high and the owner just does not want to spend the time or money to do that.

9.  The seller believes that the market value is high compared to his construction cost or purchase price, so even without specific threats to the business, believes that the opportunity to make a significant gain has just become too high to pass up.

10.  Other business interests have become so time consuming that they no longer allow sufficient time to operate the car wash.

11.  Other business interests require additional capital, requiring sale of the car wash.

12.  Decline in revenue causes has caused seller to lose interest in the car wash.

13.  Poor health.

14.  Retirement.

15.  Job transfer.

16.  Divorce.

17.  Break-up of car wash partnership.

18.  Moving home to distant location.

There are many other reasons why car wash owners sell.    A  prospective buyer would be wise to always ask why a car wash has been offered for sale.

Alan Bussey     Car Wash Loans     903-876-2308     fax:  484-737-1092

Back to Home Page           Back to Main Menu

© Copyright by Alan L. Bussey     1999 through 2009     All Rights Reserved.