Overview
Express tunnel and in-bay car washes can both be financeable, but lenders often evaluate them differently because the operating model, throughput, and site requirements are not the same. Understanding these differences helps borrowers present a cleaner story and choose realistic structures.
Throughput and revenue profile
Express tunnels are built for higher volume, especially during peak periods. In-bay models often have lower maximum throughput, which can be perfectly acceptable in the right trade area, but lenders will size projections around practical capacity.
Site design and real estate expectations
Express tunnels typically need more stacking and circulation space. In-bay sites can be more compact, which can help in certain locations. Lenders often look at whether the site layout matches the chosen model.
Capital intensity and maintenance planning
Tunnels can have higher equipment and build-out costs, which increases the importance of a complete budget and strong contingency planning. In-bay systems can be simpler, but lenders still want evidence of maintenance discipline because downtime directly impacts revenue.
What lenders focus on for both models
- Verifiable performance or credible projections supported by capacity
- Realistic expenses especially utilities, repairs, and labor assumptions
- Site fundamentals including access, visibility, and circulation
- Operator readiness including experience and liquidity reserves
Bottom line
Financing differs because the models differ. Express tunnels are often underwritten around throughput and site function, while in-bay financing is often underwritten around capacity realism and local demand fit. A clear model-to-site match is the common denominator.