What Is My Car Wash Worth?

Car washes have become one of the most sought-after investment categories in small business M&A. The membership-driven revenue model, simple operations, and real estate component have attracted massive private equity interest. Over a dozen PE firms are actively rolling up car washes nationally.

Here's how to value your car wash.

Typical Valuation Ranges

Car wash multiples are among the highest in small business:

• Self-serve and in-bay automatic washes: 3x to 4.5x SDE
• Full-service and flex-serve washes: 4x to 6x SDE
• Express tunnel washes with memberships: 5x to 8x+ SDE (or 6x to 10x EBITDA for PE buyers)

Factors that push toward the higher end:

• Express tunnel format with unlimited wash membership program
• High membership penetration (40%+ of revenue from memberships)
• Revenue above $1M per location
• Multi-location operations
• Modern equipment and facility
• High-traffic, high-visibility location
• Real estate included

Factors that push toward the lower end:

• Self-serve only (no tunnel or conveyor)
• No membership program
• Aging equipment needing replacement
• Low-traffic location
• Environmental or water compliance issues
• Single wash with limited expansion potential

Why Car Washes Are Hot

Membership revenue. Unlimited wash plans ($20–$50/month) create highly predictable recurring revenue. A car wash with 2,000 active members at $35/month is generating $840K in annual recurring revenue.

Simple operations. Compared to most businesses, car washes have relatively simple operations — lower labor requirements, straightforward service delivery, and limited inventory.

Real estate value. Car washes occupy high-visibility commercial real estate. The property itself often has significant value independent of the business.

Scalable model. Express tunnel washes in particular scale well — volume increases revenue without proportionally increasing costs.

Consumer habit. Car washing is a repeat behavior. Membership programs lock in that habit and reduce sensitivity to weather variability.

Key Metrics Buyers Evaluate

Membership Count and Penetration

The most important metric for modern car washes. Buyers want to see active membership count, monthly churn rate, and membership revenue as a percentage of total revenue. Membership penetration above 40% of total revenue signals a mature, predictable business.

Revenue Per Car

This measures average yield across all wash types. Strong express washes generate $12–$18+ per car in average revenue.

Cars Per Day

Volume is king. Express tunnel washes doing 300+ cars per day are operating at healthy utilization. Below 200/day may indicate a location or marketing issue.

Wash Capacity

How many cars per hour can the tunnel process? Modern express tunnels handle 100+ cars per hour. Utilization relative to capacity tells buyers whether there's room to grow volume.

Equipment Condition

Tunnel equipment, water reclaim systems, and chemical delivery systems are expensive to replace. Recent equipment upgrades are a value-add; deferred maintenance is a liability.

The Real Estate Factor

Car wash valuations often blend business value and real estate value. Buyers evaluate both:

• Business value: Multiple of SDE/EBITDA based on operating performance
• Real estate value: Based on comparable commercial land values, traffic count, and zoning

Many PE buyers prefer to acquire both and will pay a premium for a combined deal. Some operators sell the business and sign a long-term ground lease on the property.

How to Increase Your Car Wash's Value

1. Launch or grow a membership program. This is the single highest-impact move. Even converting 500 customers to $30/month plans adds $180K in annual recurring revenue.
2. Invest in the tunnel. Modern equipment washes faster, cleans better, and requires less maintenance. Tunnel upgrades directly increase throughput and customer satisfaction.
3. Add profit centers. Vacuums, detail services, vending, express detailing bays — ancillary revenue improves per-car yield.
4. Reduce churn. Membership retention strategies (annual prepay discounts, family plans, RFID convenience) keep members active longer.
5. Maintain your facility. Clean, bright, well-landscaped facilities attract customers and signal quality to buyers. First impressions matter.
6. Track your data. Cars per day, revenue per car, membership churn, water usage. Data-driven operations command higher multiples.

Ready to Find Out What Your Car Wash Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.