3. Property and Equipment, Net

For the three months ended March 31, 2025 and 2024, depreciation expense was $20,207 and $17,700, respectively.

For the three months ended March 31, 2025 and 2024, amortization expense on finance leases was $244 and $251, respectively.

During the first quarter of 2025, the Company committed to a plan to dispose of one car wash location. The location is classified as held for sale and has a net book value of $194 related to land and building. The assets of this location are recorded in property and equipment, net on the consolidated balance sheets. No impairment losses related to the land and building of the location have been recorded based on the fair market value and listing sales price. As of March 31, 2025, the locations classified as held for sale have a net book value of $4,683.

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. During the fourth quarter of 2024, 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. These losses were recorded in (gain) loss on sale of assets, net on the consolidated statements of operations.