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Business Highlights:Price Allocation: Business $4,946,000 | Real Estate $2,004,000Business Model: The wash operates 2 auto wash bays, 1 is touchless and the other is a brush wash. 3rd Bay opened in 2022 and is new 50’ tunnel wash. All combining express exterior washes with onsite vacuum, detailing area and enclosed pet wash bay. The tunnel wash can handle up to 60 cars an hour and income has exploded. Location: The property is positioned along a high-visibility primary municipal corridor with approximately 14,000–16,000 vehicles passing per day, supporting strong drive-by exposure and consistent customer traffic. Additionally, the property is situated among popular shopping centers.History: The car wash facility was originally constructed in 2017 with touchless bay and brush bay. In 2022 the tunnel wash was added and operated continuously, establishing a long-standing presence and loyal customer base within the market. This is the only wash that offers memberships in the area.Real Estate Included: The sale includes commercial real estate, situated on approximately 0.68 acres, providing strong vehicle circulation, operational capacity, and long-term site control.Wash Activity: The operation did 84,261 car washes in 2025 and is on pace to perform 93,000 washed in 2026.Facility Size: The property includes approximately 29,621 square feet of total improvements, including a 4,776 square foot primary building along with covered service canopy areas and 10x10 office space. New roof was completed in March 2026 from wind damage. Ownership Structure: The business is currently owned and managed by owner. Owner chooses to be on site most days and employs 2 part time assistants. Management Team: The operation includes the current owner and one part time manager, allowing the business to operate with limited day-to-day owner involvement.Competition: The facility is the only operational tunnel wash within 90 miles with minimal local competition of this caliber. Growth Opportunities: Opportunities exist to expand memberships, technology and price improvements. Competitors in larger markets at charging $25/car and owner is priced at $18/car currently. Owner may move to $20/car this spring. This will result in $186,000 potential net income.Reason for Sale: Retirement.Seller willing to stay on and train for 30 days
Why we like it
- Cash Flow Quality: $755K in cash flow on $1.2M revenue translates to 63% margins, which is exceptional for a service business and reflects the operating leverage of the tunnel wash investment. The 84,261 annual washes at current pricing provide predictable, high-frequency revenue with strong unit economics that should only improve with scale.
- Geographic Moat: Being the only tunnel wash with memberships within 90 miles creates genuine pricing power and customer retention advantages. The 14,000-16,000 daily vehicle corridor provides a massive addressable market with minimal competitive pressure, especially given the capital requirements to build competing infrastructure.
- Recession-Resistant Demand: Car washing represents non-deferrable maintenance spending that holds up well during economic downturns, particularly in harsh weather climates where salt and grime create year-round demand. The membership model creates recurring revenue that smooths seasonal variations and improves customer lifetime value.
- Operational Leverage: The recent tunnel addition demonstrates how incremental capacity investments can dramatically improve throughput and margins, with the ability to process 60 cars per hour representing significant untapped capacity given current volumes. The minimal staffing requirements (owner plus 2 part-time) show this business can scale revenue without proportional labor cost increases.
How to improve it
- Immediate Price Optimization: Raise prices from $18 to $20 per car as the owner is already considering, which would generate an additional $186K in annual net income according to the listing. With no meaningful competition within 90 miles, customers have limited alternatives and will absorb modest price increases.
- Membership Growth Campaign: Implement aggressive membership acquisition through introductory pricing, referral bonuses, and partnerships with local dealerships and fleet operators. The recurring revenue nature of memberships improves cash flow predictability and customer lifetime value while reducing price sensitivity.
- Technology Integration: Install modern POS systems, mobile app ordering, and automated license plate recognition to reduce labor costs and improve customer experience. These efficiency gains can help justify premium pricing while reducing the owner's day-to-day involvement.
- Capacity Utilization: Focus marketing efforts on peak-hour traffic optimization and off-peak promotions to better utilize the 60-car-per-hour tunnel capacity. Current volumes suggest significant room to grow before hitting operational constraints.
- Ancillary Revenue Streams: Expand high-margin services like detailing packages, protective coatings, and retail car care products that complement the core wash business. The existing detailing area provides infrastructure to capture additional revenue per customer visit.
- Fleet and Commercial Contracts: Target local businesses, delivery companies, and government fleets with volume discounts and scheduled service agreements. These relationships provide predictable revenue and help smooth demand fluctuations.
- Operational Efficiency: Implement lean processes to reduce the owner's daily involvement and create systems that enable the business to run with part-time management. This reduces buyer dependency concerns and improves the business's appeal to investors seeking passive income.
Diligence notes
- Revenue Seasonality: Verify monthly cash flow patterns to understand weather-related demand fluctuations and ensure the business maintains positive cash flow during slower winter months. South Dakota winters could significantly impact volumes and the listing doesn't provide seasonal breakdown data.
- Real Estate Validation: Confirm the $2M real estate allocation is reasonable through independent appraisal and verify zoning compliance for all current operations. The 0.68-acre site size and traffic counts need third-party validation given their importance to the investment thesis.
- Competition Analysis: Conduct thorough competitive reconnaissance within the claimed 90-mile radius and research any planned competing developments. The competitive moat is a key value driver that needs verification through local market intelligence.
- Equipment Condition: Inspect the tunnel wash equipment thoroughly since it drives the majority of volume and revenue growth, and verify maintenance records and remaining useful life. The 2022 installation should still be under warranty but operating hours and wear patterns need assessment.