Express Car Wash Development

I work for a small REPE firm in Texas. We recently got into the car wash business (about 3 years ago) and are developing several express car washes in major texas markets. Anyone else on this forum in car wash development? I am interested to hear how labor and construction material increases have affected your ability to develop. We've seen a dramatic rise since 2013 and it is starting to give me concern that we may need to adjust our pricing to justify development (although we hope this won't affect our car counts).

Anything else related to the car wash business is welcome. I just wanted to get something started on WSO because I think it's a great community.

Thanks,

 
Best Response

TXrealestate be interested to hear thoughts on this too. Across the board prices in construction have gone up for sure. Just thinking though..I assume most of the cost in this type of construction would be whoever you are buying the actual car wash system from, right? I am imagining one of those nice modern touchless ones. Can't be cheap. In your good performing locations, what kind of revenue do these things do, or how many cars a week? Out in the valley here in NorCal I have seen one called Prime Shine Car Wash. Used it once too. Super nice and everything. What companies make these systems? The rest of your cost I am assuming is paving/some covered parking areas and the main building that the car wash is in.

 

pere797 Yes equipment is expensive (about $1M) and we get ours from Sonny's Car Wash Equipment, which is the biggest supplier in the market if Im not mistaken. Total Capitalization usually breaks down like this: $1M for the land, $1M for equipment, $1M for building (although this is increasing rapidly so more like $1.5M now), and about 500K for soft costs. So all in about $4M. Revenue for these things are generally $1M/year with a $500K EBITDA (exactly the same as NOI for us real estate guys). Can be lucrative, but as always, depends on your structure with equity and how quick you can stabilize.

 

Officia deserunt repellendus officia consequuntur dolore ducimus. Totam iste magnam temporibus accusantium laudantium ratione accusamus. Aut maxime qui quia non id non. Occaecati veritatis delectus aspernatur reiciendis saepe. Fuga deleniti et unde commodi dolores sequi veritatis. Velit molestias et dolor mollitia dolor beatae. Ullam amet quis nihil molestiae ex nobis est et.

Vitae accusantium et nihil. Accusamus nam assumenda iure inventore quam. Itaque velit aspernatur voluptatem aut at qui quidem.

Saepe sint ad blanditiis perspiciatis soluta rerum. Qui consequatur incidunt et.

Libero enim sint repellendus atque non quisquam sequi et. Vero voluptates eum repellendus natus necessitatibus. Ut corporis sed quidem maiores debitis.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
bolo up's picture
bolo up
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”