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Pricing a Coin-Op Car Wash Business and What Buyers will Pay

If you are considering selling a coin-op car wash business, getting a business appraisal or valuation feel free to contact me today.

Generally Coin-Operated Car Washes are combining with automatic car washes and other services. First let’s look at the older, original model of strictly coin-operated – these are still ALL cash businesses. Passive income, almost labor free.  I’d love to own a good one!  At one point, they were SOLID GOLD.

Fewer stand-alone coin op car washes remain and fewer still are being built.  Those that exist and which have not been combined or up graded to multiple services are often in a state of less than perfect repair.  The equipment is aging, neighborhoods changing,  often subject to vandalism and abuse. So the multiples are less than they were in past decades.  Before the bubble burst, multiples of 5 and 6 could be justified.  Since then, many communities have passed regulations regarding water use (they consider it wasted), and this has lead to more expensive full service facilities that recycle the waste water.

An Older coin-op will generally sell for the current value of the real estate or as an alternative, the cost of the original real estate and some credit for the used equipment, depending on condition.  If it is truly a money maker, often a negotiated figure for 2-3 times cash flow can be obtained.

There are still some very nice ones around.  Where I went to High School, the same one is still there and still just coin-op.  But the owner has made upgrades and improvements to keep it looking presentable.  The cost of these improvements and staying presentable brings the net profits much lower then in the days I went there after school to wash my car for Fifty Cents.

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