The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

car wash pricing

what's the deal with car washes being priced at 5x the net? Correct me if I'm wrong but if I have to work for 5 years (plus the intersted on note) to recoup the my investment it sounds like a really bad business to me? And does not even include the real estate. So, you buy a 1.5 mil car wash that nets 300K and has 10 years remaining on the lease. By the time you break even you only have 5 years left to make that "high" net. Sounds like a really bad deal to me. I'd like to hear your thoughts.

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., ""

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, illegal activities, or to rant about personal issues. Please review the full guidelines if you have any questions.

Submit Your Answer
Answers (3)
Mrs. Elizabeth White
Washington County, FL


Hello to All across the globe, I am Mrs. Elizabeth White, from United State Of America, USA. I am a mother of 4 kids and I was stuck in a financial situation and I needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success, and most banks declined my credit ,do not fall prey to those hoodlums at there that call them self money lender they are all scam , all they want is your money and you will not hear from them again they have done it to me twice before I meet Dr. Maverick Leonidas the most interesting part of it is that my loan was transfer to me within 74hours so I will advice you to contact Dr. Maverick Leonidas if you are interested in getting loan and you are sure you can pay him back on time you can contact him via email……… ( No credit check, no co signer with just 2% interest rate and better repayment plans and schedule if you must contact any firm with reference to securing a loan without collateral then contact Dr. Maverick Leonidas today for your loan

They offer all kind of categories of loan they

Short term loan (1_10years)
Long term loan (20_30 years)
They offer loan like
Home loan............., Business loan........ Debt consolidation loan .......
Student loan..........,Business start up loan
Business loan....... , Company loan..............Mortgages loan
construction loan........ hotel loan....personal loans.. etc

When it comes to financial crisis and you need to be free from financial crisis then Dr. Maverick Leonidas loan loan is the place to go please just tell him I Mrs Elizabeth White direct you Good Luck....

Aug 31, 2017
No User Photo
Business Brokers Of Nevada
Clark County, NV

The 5x net is not really the issue. The amount remaining on the lease is the issue. A ground lease with improvements for a facility such as this would need to have at least 25 to 30 years left or an option that would allow it. I have had many carwash facilities in the west and would not look at anything that I could not buy the real estate or have a 30 to 40 year lease with options.
I have never used an X times earnings, I broke it down to dollar per car and cars washed. I had my own formula for my own use, it helped that I was looking at it from an owner operator point of view and not an accountant or an investor.

I was in the carwash business for 20 years, let me know if you have anymore questions.


Oct 13, 2009
No User Photo
The BAF Group LLC

Jason, you can use any multiple you want, ask Accountants for their appraisal of Value, use far more sophisticated calculations to determine Cash Flow, and more. But what it really comes down to is: What is a Buyer actually willing to pay? ANY business is only worth whatever the Buyer is willing to pay.

There are other, mitigating issues. The Buyer may offer 5X Net, but is he able to pay in Cash. Because a Lender is not apt to offer 5X Net.

But what is Net? How has it been defined? How has that been analyzed? By whom? Is the Seller not disclosing all of the Cash he is reporting on his Taxes, and is he trying to charge you with that unreported Income? (This is common in many businesses that deal in large amounts of Cash.)

But it is not uncommon for Car Washes, Laundromats, Liquor Stores and some C-Stores to demand, and sometimes have Buyers that are willing to pay premiums for such businesses. There are two reasons for this, from our perspective. First, many such Buyers are unsophisticated in their approaches to buying a business and may not understand the impact on Cash Flow and how it is used to measure prices in small business purchases.

The second reason is simply the fact that these businesses are in high demand and low availability. The classic "supply and demand" approach to pricing would push any business to high - sometimes unrealistically high levels.

Without actually seeing the books on the business you are considering, I can't be more definitive than this.

Oct 12, 2009