The Real Price of a Car Wash: Multiples, Market Speed & Misconceptions

By Sally Male & Rory Hilton
30/06/2025
As the 2025 financial year closes, we’ve been reflecting on the key forces shaping car wash transactions across Australia.

At CWSA, we’re fortunate to sit at the heart of the market—working with owners, operators and new-to-industry investors daily. The result? A front-row view of emerging trends directly influencing sale prices, buyer behaviour, and time on the market.

Here’s our take on what’s driving car wash values right now—and what sellers and buyers need to know heading into FY26.

photo of a very busy car wash for sale with car waiting in line to use bays

Multiples: Out With the Old, in With the New

For the last 5 or so years, a “5 X multiple” was the standard benchmark in the car wash space, regardless of normal comparability factors and void of any “real” analysis. But not anymore.

The reality is that there’s no single rule regarding car wash valuations. Recent transactions have spanned a broad spectrum of multiples, with sale outcomes heavily influenced by numerous factors, including site performance, competition, customer volume, equipment factors (not just age), on site pricing strategy, and buyer profile. Some sites attract premium offers, while others sit at the more conservative end of the scale—each for a good reason.

What’s driving this spread?

  • Site performance and competition (actual and potential) remains the most significant variable.
  • Remaining lease term, including any renewal options, should total at least 15 years to give buyers confidence and drive a competitive price.
  • The age, brand, and forecasted capital expenditure of equipment will be key considerations in buyers’ pricing decisions.
  • Investor appetite for growth sectors is pushing premium sites higher.
  • On-site activity and pricing play an essential role in revenue and growth forecasting, along with sale positioning.
  • Car washes remain undervalued compared to other asset classes, making them increasingly attractive to investors seeking yield.

“Multiples between good sites and underperforming sites will continue to widen as the market becomes more sophisticated and reliant on real data and analysis….Focus should remain on positioning the site accordingly to attract the best buyer profile that will pay the highest possible price, regardless of the multiple. The market always dictates the price, and using market lead data that all stakeholders can rely on, will add the missing ingredient to making informed decisions on both the buy and sell side.”

– Rory Hilton, Managing Director, CWSA

“Multiples between good sites and underperforming sites will continue to widen as the market becomes more sophisticated and reliant on real data and analysis….Focus should remain on positioning the site accordingly to attract the best buyer profile that will pay the highest possible price, regardless of the multiple. The market always dictates the price, and using market lead data that all stakeholders can rely on, will add the missing ingredient to making informed decisions on both the buy and sell side.”

– Rory Hilton, Managing Director, CWSA

Speed to Market: Why Preparation Drives Price

We can’t overstate this enough: the speed of sale and the final price directly correlates with how prepared you are when going to market. As an owner, the number one thing you can do to help your appointed advisor launch a strong campaign is to get your books in order!

Today’s buyers often have financial advisors at the table. And let’s be blunt—these advisors are expert deal-killers if your financials and site data aren’t packaged properly from day one. Just because you can understand the flow of funds that happens on site, this doesn't translate to the next person reviewing your books.

Not to mention the opinion of lenders—banks aren’t interested in the theoretical cash takings. Simply put, the position from the funders is that if it’s not in the books, it doesn’t exist. As such, they can't and won’t fund this portion.

A clean, well-presented business is more likely to deliver a better outcome.

“You only get one shot at a first impression... Poor execution or presentation of your site, be it the physical car wash or the way in which you present the books, tells buyers all they need to know about the operation.”

– Rory Hilton, Managing Director, CWSA

“You only get one shot at a first impression... Poor execution or presentation of your site, be it the physical car wash or the way in which you present the books, tells buyers all they need to know about the operation.”

– Rory Hilton, Managing Director, CWSA

Buyer Profiles: Two Distinct Groups Emerging

The buyer pool is evolving, and understanding motivation is critical for owners preparing to sell. Learning who your car wash is likely to attract will help to establish realistic expectations.

Lower-End Value Sales: Career Changers

  • Typically, first-time operators
  • Often need bank finance
  • Motivated by lifestyle or stepping stone into small business ownership
  • Price-sensitive but often emotionally driven

Higher-End Value Sales: Investors

  • Semi-passive investors who are attracted to the sector returns and opportunities.
  • Thematic investment buyers who are drawn to the car wash sector (think: similar fundamentals to other Opco / Propco spaces like self-storage or Childcare)
  • Sophisticated investors benchmarking returns across asset classes.
  • Willing to pay a premium for quality sites with scale or strong returns.
  • Often, if not always, see the real estate, particularly in metropolitan locations as severely undervalued.

Direct Deals: Why They’re Costing Sellers

We’re seeing more evidence than ever: Direct buyer approaches rarely result in the best price for sellers.

In fact, our data shows that direct deals often settle 10–20% below market value.
Why? Because direct buyers expect a discount. And just because someone already owns a car wash doesn’t make them the best buyer for your site.

The best buyers—especially new-to-industry investors—have shown to pay a premium, reached through a strategic, open market process.

“We’ve seen it time and again—sellers who run a full market process, or engage a specialist to manage the outcome, come out well ahead.”

– Rory Hilton, Managing Director, CWSA

“We’ve seen it time and again—sellers who run a full market process, or engage a specialist to manage the outcome, come out well ahead.”

– Rory Hilton, Managing Director, CWSA

Due Diligence: Invest Early, Win Later

Whether buying or selling, cutting corners on due diligence will cost you in the long run—this isn’t the place to skimp on time or investment.

Buyers: For a more competitive edge to your offer, do your DD during the selling process. Risk plays a significant role in all decision-making processes for vendors. Hence, a clean offer reduces risk, thereby increasing the likelihood of engagement from both the vendor and the agent.

Sellers: Appoint experts to help prepare your financials, lease details, and operational and market data (including site analysis, customer visitation, passing traffic, etc) before going to market.

A well-prepared buyer looks more attractive. A well-prepared seller gets better offers. Do the work, invest the money, and success will follow.

The Real Estate Squeeze: Competing for Land

Fast food (QSR) operators, large-format retail, and other in-demand businesses are aggressively chasing land across Australia, often attracting a sharper investment yield for property owners than car washes currently do.

Car washes must evolve to stay relevant and remain the highest and best use for their site.

What this means for operators:

  • Rents are rising—and fast
  • Replacement costs are limiting new greenfield opportunities
  • Land values are demanding sharper financial performance from operators
  • Operators who aren’t watching customer and real estate trends, along with site metrics risk being priced out—or replaced.

Despite this, we still believe car wash real estate remains one of Australia’s most undervalued property sectors.

“Operators need to innovate, adjust pricing accordingly, and evolve with consumer trends and demands to thrive.”

– Rory Hilton, Managing Director, CWSA

“Operators need to innovate, adjust pricing accordingly, and evolve with consumer trends and demands to thrive.”

– Rory Hilton, Managing Director, CWSA

Looking Ahead: What We Expect in FY26

CWSA is forecasting a high transactional volume in FY26.

• In the previous 12 months, we’ve sold, are in due diligence on, or provided advice on over $170 million of car wash assets.

• We expect this growing pipeline to deliver many buying opportunities via our business in the upcoming financial year, so start saving those pennies, your next car wash could be right around the corner!

Our team continues to invest heavily in data-driven tools.

• We have recently formed a partnership with a tech provider giving us mobility and site visitation information to support our more traditional traffic and catchment demographics.

• Contact us to understand more or have your site analysed. We can tell you where your traffic is coming from so you can better adopt marketing strategies to reach your ultimate audience. All this helps sellers and buyers make informed decisions.
Did you know CWSA is also a buyer’s agent?

• In our two most recent appointments, we saved our clients between $500,000 - $1,000,000, respectively. We can act on your behalf if you are considering a car wash listed through another agency.

Talk to the Experts at CWSA

Whether you’re a first-time buyer, a seasoned investor, or a car wash owner looking to grow or for the best sale outcome—CWSA is here to help.

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© 2025 Car Wash Sales and Advisory
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