The amount of money you’ll need for construction depends on whether you have the land, build or buy, and the type of car wash you want to open.
Other considerations include whether you open an automatic car wash or self-service, or if you hire employees to perform car washing services.
In order to get the overall cost of licensing and permits associated with opening a new car wash business, reach out to your city government. You also need to consider state and federal requirements.
Things like the equipment you need, permits, and how much it takes to run the business all affect the cost. For example, a self-service car wash doesn’t need as much money at the start compared to an automated one.
Assuming you rent instead, typically startup costs will represent anywhere from $50,000 to $150,000 depending on the type of car wash you operate. For example, the equipment of the touchless washing will typically cost anywhere from $20,000 to $100,000.
A car wash startup will require a considerable upfront investment for the equipment. Over 90% of car washes rely heavily on electricity and water to clean vehicles repeatedly throughout the course of a day.
Before diving headfirst into opening a car wash, carry out research on the car wash market to enable you to verify that your business can be commercially viable and understand customer expectations.
Start by taking a look at the International Car Wash Association for information on the industry. When you drive around looking at open lots, you will be checking out the competition and seeing what land is available to purchase or rent.
Consider if automated car washes generate more revenue than self-service ones by charging higher rates per wash. They take less time per wash, so the revenue capacity is higher. JBS Industries estimates tunnel car washes generate $685,000 annually with an average $15 per wash. Many offer unlimited membership plans.
Starting a business takes work, so begin with information to understand requirements. Register the legal business structure, like an LLC for its speed and simplicity. Weigh pros and cons to decide if the business is right for you. Consider constant car wash demand versus high startup costs and management needs.
The car wash market offers good profits without too much risk compared to other businesses. Car washes are profitable due to variety – automatic, conveyor, self-service allow various service types and pricing in one location. Determine realistic profits based on costs in your area and type of car wash.
Car wash owners’ income depends on the car wash type, size, location, and efficiency. Industry analysis shows car washes are low-risk, highly profitable businesses with almost 100% return on investment confidence.
Consider lower-cost options like mobile car washing instead of investing millions in a fixed location. Research your city for competition. The $14.2 billion US car wash industry is expected to triple by 2025 showing potential. Attract car wash customers through social media and site visibility. Explore small business loans if needed to buy or upgrade locations.