Costs and Considerations for Opening a Car Wash Business
A car wash makes cars look clean by removing dirt for a fee occurring manually or via machines. The cost to open a car wash depends on many variables such as owning land or needing to lease/buy, desired setup type, construction, and type of car wash. Check city, state, and federal requirements on licenses and permits.
- Assuming rented property, startup costs typically range $50,000 – $150,000, depending on the car wash type.
- Factors like needed equipment, permits, and operating expenses affect the total cost.
- Consider if automated car washes generate more revenue than self-service by charging higher rates per wash.
Market Research and Viability
Before opening a car wash, research the market to verify business viability and customer expectations. Drive potential locations to view competition and available property for purchase or rental. Check industry information from the International Car Wash Association.
- Touchless wash equipment usually costs $20,000 – $100,000.
- JBS Industries estimates tunnel washes make $685,000 annually averaging $15 per wash.
Profitability and Investment Opportunities
The car wash market offers good profits without too much risk compared to other businesses. Car washes are profitable due to a variety of service types/pricing in one location – automatic, conveyor, self-service.
- Automatic washes generally earn more than self-service.
- Explore small business loans if needed to buy/upgrade locations.
- Register the legal business structure like an LLC for speed and simplicity.
Income and Revenue Potential
Do car wash owners make a lot of money? Average monthly income is approximately $50,000. In-bay automatic car washes make more money than self-serve. Revenue depends on location, weather, and expenses.
- Loans and financing help make buying/upgrading car washes accessible.
- Income depends on several factors.
- Calculate cash flow for the business to ensure profitability.