Overview
Car wash purchase due diligence is the process of verifying what you are buying before you close. A car wash is both real estate and a machine-driven operation. The best buyers confirm financial performance, inspect equipment and infrastructure, and validate compliance so there are no surprises after ownership changes.
Financial verification
Start by confirming that reported revenue matches reality. Review bank deposits, POS reporting, wash counts where available, membership billing data, and month-by-month trends. Compare revenue patterns to weather and seasonality so you understand what is normal for the site.
Expense validation and normalization
A due diligence review should confirm utilities, repairs, chemical costs, labor where applicable, insurance, and property taxes. If expenses look unusually low, plan for normalized costs because that will impact true cash flow and loan sizing.
Equipment and infrastructure inspection
Inspect the wash system, payment equipment, vacuums, pumps, and electrical components. Review service records and ask what parts have recently been replaced. Also confirm the condition of plumbing, drainage, reclaim systems if present, and any on-site storage areas.
Permits, compliance, and legal items
Confirm zoning compliance, permits, and any local operating requirements. Verify whether there are open violations, unpaid fees, or requirements tied to water discharge, reclaim, or stormwater handling. Make sure the purchase agreement clearly defines what transfers and what does not.
Site factors and operational risk
Review access, stacking capacity, visibility, signage, and competitive density. Confirm that the site can handle peak flow without bottlenecks. If the car wash depends heavily on one revenue source, such as a single membership tier, evaluate churn and customer behavior.
Bottom line
Good due diligence is less about paperwork volume and more about verifying the real drivers of performance. If revenue is verifiable, equipment is serviceable, compliance is clean, and costs are understood, the purchase is far more likely to meet expectations.