Car Wash

[renferme]

Anyone know anything about investing in a Car Wash ?
My son-in-law lives in a rapidly growing area near DC.
Building homes so fast as to make your head spin, but in the area, there are no car washes.
He thinks this may be a good investment; only problem is the high cost of real estate. Anyone have any ideas or thoughts ?

[Jarhead*]

Quote:

Anyone know anything about investing in a Car Wash ? My son-in-law lives in a rapidly growing area near DC. Building homes so fast as to make your head spin, but in the area, there are no car washes. He thinks this may be a good investment; only problem is the high cost of real estate. * Anyone have any ideas or thoughts ?

I don't know what the numbers are on expected return from Car Washes, but I do like the idea of them.
He will have the important security of owning the real estate (land). It is an appealing idea, depending on the location and price of the land.
One of the biggest mistakes one can make in a retail type business is not to own the real estate.

[MRGALT2U]

I agree with Jarhead. The same thinking can apply to
laundromats.

JG

[haha]

Quote:

One of the biggest mistakes one can make in a retail type business is not to own the real estate.

Jarhead, is this mainly for the speculative pop from property appreciation, or to be sure you are not forced to move?

Mikey

[cute fuzzy bunny]

Liability can be a problem I'd imagine.

Now I have that dang "workin' at the car wash, yeah" song running around my head.

Thanks. :P

[ak4195]

perhaps google up franchises and such.Hopefuly its somewhere that gets some good spring mud.good luck

[Nords]

Quote:

Anyone know anything about investing in a Car Wash? My son-in-law lives in a rapidly growing area near DC.* Anyone have any ideas or thoughts ?

Oddly enough, my FIL owned a coin-operated self-serve car-wash franchise in the DC area in the 1960s. One of my spouse's early memories is wrapping quarters ad nauseum.

He had persistent problems with theft & vandalism. He also needed an on-call handiman to repair water leaks, fix power outages (you'd be surprised what those pressure jets can get into), and deal with the occasional irate customer. One of the district wise guys also objected to the upstart business and FIL felt obligated to carry a firearm. Hopefully things have improved in your SIL's neighborhood!

Presumably he's already checked into the environmental control & recycling rules for water use, road salt, mud, oil, etc. That's an unfunded mandate that many franchise owners don't adequately represent. There'll be extra costs in winter to heat the water (and the building) and the reduced business. And then there's the issue of liability vs incorporating the business. If the business is a full-service car wash, then you're adding in the extra skills required to deal with the type of "worker" that it attracts. But maybe ex-cons working at carwashes is just a Hollywood stereotype?

Is he planning on doing this full-time? Wouldn't buying a nice rental condo or a duplex be less of a headache?

[MRGALT2U]

I personally have no experience with a car wash
investment, nor a coin laundry for that matter.

When I was in full entreprenuer mode, sometimes I would mention that I was looking at a particular business and my companion would say "Isn't that
a lot of money/hassle/bother/risk/work/etc?" I would say
"probably, but most businesses are" (except those
listed here under "make money with no work and no brains) That, and lousy bosses or maybe just any bosses at all are big reasons why
a lot of us are ERed.

JG

[renferme]

Nords: "Wouldn't buying a nice rental condo or a duplex be less of a headache?"
.
Yes and he's already into condo/duplex rentals.

[Martha]

Quote:

Now I have that dang "workin' at the car wash, yeah" song running around my head. Thanks. :P

Me too. I sometimes lurk at Raddr's site and I end up with "Radar Love" going through my head:

I've been drivin' all night, my hand's wet on the wheel
There's a voice in my head that drives my heel . . .

End hijack

[yelnad]

I have friends that built a car wash locally. I don't know a lot about it, but it seems to be very profitable. They manage it themselves which requires stopping by once a day for an hour or two to refill things and make sure all is ok. They also carry a beeper. Insurance is very expensive. A woman drove her car into their vending wall (was trying to kill herself) and their insurance company dropped them. They had a hard time finding another one.

[kayelem]

It's true we are short of car wash locations in DC area, but I believe BECAUSE of high RE prices.

Depending on where he is at (outside of beltway?), most new c-stores/gas stations are putting in car washes for the additional revenue it provides where space allows, so that will be a prime source of competition. *The new ones are pretty darn good. *I recently saw a line 15 cars long (at 7 minutes a wash average, I asked) at a new car wash/c-store near my house. *

Also, right now is prime car wash selling time (rain, salt on road, etc and too cold to wash car yourself), so don't be fooled by the demand this time of year. * Lots of seasonality to the business.