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On the surface, car washes might seem like low-tech, unglamorous businesses - but in 2025, they’re catching the attention of serious investors. And for good reason.

Today’s car washes have traded in elbow grease for automation, manual labour for monthly memberships, and unpredictable foot traffic for recurring revenue. People are keeping their cars longer, leasing more, and driving more - meaning they’re also washing them more often.

And the industry has noticed. Private equity is rolling up express wash chains, real estate is being packaged into deals, and even smaller independent owners are seeing EBITDA margins that would make SaaS companies jealous. So, is buying a car wash still a good bet in 2025? Let’s dive in.

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INDUSTRY BREAKDOWN

The Numbers:
There are over 62,000 car wash locations in the U.S., with $19.3 billion in projected 2025 revenue. The most profitable model today? The express tunnel wash with a monthly subscription plan. It’s fast, scalable, and comes with low labor requirements.

Recurring Revenue Rules:
Many express washes now make up to 80% of their revenue from memberships. Customers pay a flat fee and wash their car as often as they want - rain or shine. That’s predictable income, which means better cash flow and better multiples at exit.

Margins That Gleam:
Well-run express washes can generate EBITDA margins between 20–35%, thanks to minimal labor, high throughput, and strong upsell opportunities.

The Drawbacks?
Site selection is critical. Equipment costs can be steep. And if you're buying a business with aging infrastructure or without proper water reclamation systems, prepare to invest. Still, for the right buyer, a car wash can be a surprisingly sleek business to own.

Search Tips For Buying A Car Wash

Where to Look

• BizBuySell

• BusinessesForSale.com

• Axial

• VillageWellth

✅ Buy Signals: What to Look For in a Car Wash Deal

• Strong Membership Base: Recurring revenue from wash club members

• Modern Equipment: Recently upgraded tunnels, POS, and water systems

• Real Estate Included: Owned land adds long-term value and exit options

• Location, Location, Location: High traffic areas, suburban growth corridors

• Proven Profitability: Consistent cash flow and financial records over 3+ years

🚨 Warning Signs: Red Flags When Reviewing Listings

• Low Volume or Revenue Volatility: Especially if tied to weather

• Outdated Equipment: Expensive to replace, risky to maintain

• Lease Uncertainty: Short-term leases or pending rezoning issues

• Labor-Heavy Model: If it’s full-service, expect lower margins

• Environmental Issues: Noncompliant water runoff or aging reclamation systems

📜 Common Deal Structures

• Asset Purchase: Most common - buy the business, not the liabilities

• Stock Purchase: Includes legal and tax obligations

• Owner Financing: Often available in smaller deals

• Real Estate Bundles: In some cases, buyers acquire the business and the property in one

Final Thoughts: Is It Time to Buy a Car Wash?🧽

They may not be sexy, but car washes offer something rare - predictable income, high margins, and simple operations. For the right buyer, especially those looking to get into the subscription-based business game, it’s a compelling opportunity.

The best opportunities?

• Well-located express washes

• Strong recurring revenue base

• Real estate ownership or long-term lease security

DEAL REVIEW

Green Flags 🟢

• Owner-Absentee Operation – The business is designed for low involvement, with one part-time 1099 employee handling daily maintenance and support from certified car wash techs, making it ideal for investors seeking passive income.

• Strong Growth Potential – There are clear, low-hanging growth opportunities such as upgrading equipment, launching basic marketing efforts (currently no website), or adding a subscription program.

• Real Estate Included – The property is owned and included in the sale, providing long-term stability and asset value for the buyer.

Red Flags 🔴

• Broken Touchless Automatic Bay – The automatic wash bay is currently non-operational, potentially limiting revenue and requiring upfront investment to repair or replace.

• No Online Presence – The lack of a website or any digital marketing limits visibility and customer acquisition opportunities in an increasingly online world.

• Single Employee Coverage – Relying on one 1099 worker to maintain operations may present continuity risks if that individual becomes unavailable or leaves unexpectedly.

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

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