Thinking About Buying a Car Wash? Read This Before You Sign Anything!

But not every wash is a true business. Some are just demanding jobs in disguise. Here’s a detailed checklist to help you avoid buying a hose and a headache.

1. How Long Has the Car Wash Been Operating?
A car wash with 10+ years of operations often has consistent traffic, customer loyalty, and proven systems in place. Newer washes may look sleek but lack the market validation and maintenance history needed for long-term success.

2. What Type of Car Wash Is It — and Can It Scale?
Understand the operational model before buying:

• Self-service
• In-bay automatic
• Full-service or express exterior
• Flex-serve or hybrid

Each type requires different levels of staffing, throughput, and scalability. Ask yourself: is this a business that runs on systems — or one that runs on the owner’s time?

3. Do the Financials Hold Up?
Require CPA-reviewed financials for the past 3 years, including:

• Revenue by service type
• Utility costs (often a major expense)
• Labor expenses and staffing costs
• Maintenance records
• Chemical and supply usage

Incomplete or messy books can signal poor operations — or hidden maintenance risks.

4. What Are the Revenue Trends?
Review past revenue patterns and seasonality:

• Are revenues stable or growing?
• Are sales weather-dependent?
• Is there a monthly membership program?
• What is the average ticket size?
• How well is customer retention tracked?

You’re not just buying current income — you’re investing in the business’s future trajectory.

5. What Is the Seller Really Taking Home?
Look beyond tax returns to assess true owner benefit:

• Owner salary or distributions
• Cash skim (if applicable)
• Personal expenses run through the business
• Non-recurring or discretionary costs

Add-backs reveal a clearer picture of what your return on investment could look like.

6. Is It Bankable?
If you’re financing, lenders will expect:

• Positive cash flow after debt payments
• Clean EBITDA with documented add-backs
• SBA loan eligibility
• Utility cost-to-revenue ratios

If the business can’t cover its own debt, it’s not an investment — it’s a liability.

7. Are You Buying Deferred Maintenance?
Car washes rely on heavy equipment. Before buying, evaluate:

• Age of tunnel systems, POS kiosks, vacuums, and dryers
• Upcoming replacement needs
• Existing warranties or service agreements

You don’t want to inherit costly breakdowns or outdated systems.

8. Is the Staff Reliable and Well-Trained?
For staffed operations, investigate:

• Tenure and quality of management
• Wages and turnover rates
• Employee retention after the sale
• Dependence on the current owner’s involvement

A high-functioning team can make or break the transition.

9. Is the Location Sustainable?
Real estate is key. Ask about:

• Traffic visibility and access
• Pending construction or zoning changes
• Nearby competitors or new washes coming online

You can upgrade equipment — but you can’t fix a poor location.

10. What’s the Long-Term Exit Plan?
Consider whether the car wash can grow or be positioned for resale:

• Can it be converted to a more scalable model (e.g., express exterior)?
• Is there room to add upsell services or detailing?
• Is this the first of several locations?

You’re not just buying a job — you’re buying a business that should one day sell for more than you paid.

Final Thought: Wash Your Assumptions
A car wash can be a powerful income-generating asset — but only if you look past the surface and do your due diligence. Take your time, ask smart questions, and make sure you’re buying a business, not just a shiny set of problems.

Thinking about buying a car wash?
Let’s talk. We help car wash buyers evaluate opportunities, secure financing, and acquire high-performing assets with confidence.