New Wash in Edmonton

Hello,

I've been looking to start a 6 bay self-serve car wash for quite some time now and the market in Edmonton is steady and doing quite well, but I was wondering if there’s a good place to obtain beginners information in starting a ss car wash.

I'm debating whether to purchase the land or lease it, purchasing is difficult as there isn't enough land in ideal locations around. Leasing on the other hand has many options but I'm not sure if it would be wise to lease.

Any input for a beginner is greatly appreciated!

Thank You!

Eddie Tsang

I think it's always better to own the land the wash is on when feasible. That way, during the life of the loan, you are consistently investing in real estate and historically, real estate has been a good investment for many. There will be ups and downs in your revenue with any carwash and to be paying off a note even during lower revenue periods, you can have peace of mind regarding your long-term financial goals.

You'll need to create 3 years of pro formas as part of your business plan, so you can run the numbers both ways; leasing vs. purchasing.

Good luck!