4. Property and Equipment, Net

Depreciation expense was $75,200, $62,214 and $52,715 for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense on finance leases was $1,006, $1,005 and $991 for the years ended December 31, 2024, 2023 and 2022, respectively.

During the fourth quarter of 2024, the Company committed to a plan to dispose of two car wash locations and entered into agreements to sell them during the first half of 2025. As of December 31, 2024, these locations are classified as held for sale and have a collective net book value of $4,489 primarily related to land and building. The assets of these locations are recorded in property and equipment, net on the consolidated balance sheets. We recorded $1,549 of impairment losses related to the land and building of one of these locations based on the agreed upon sales price. There were no impairments recognized in 2023. In December 2022, we recorded $6,252 of impairment losses primarily related to the land and building of two locations, using independent third-party appraisals to determine the change in market values. These losses are recorded in (gain) loss on sale of assets, net on the consolidated statements of operations.