Trades

Start A Self Service Car Wash Or Hand Car Wash Business

Cars Will Always Get Dirty

There are nearly 280 million vehicles on the road in the USA; they eventually all need to be washed. People are buying more vehicles today than older generations, so the demand for a good car wash will continue. Also, unlike many other businesses, the best car wash systems are not mobile businesses, nor can they be outsourced. It’s always best to wash your car at a brick-and-mortar self-service car wash facility. In North America, almost every household has at least 1-2 vehicles, and for the most part, owners like to keep their cars clean. Go to any carwash; there are always long lines. For less than $10, one can get a car wash in less than 5 minutes. The two most common types of car wash are automatic or self-service. In any case, the demand for car wash facilities is high.

Set Up A Drive Through Car Wash Company

There are several options for starting a car wash business, including buying an existing car wash or building one from scratch. Many people consider venturing into the car wash business because of the business’s seemingly low-key hands-off nature. Do not be fooled; a car wash business is demanding and requires long hours. The owner must ensure that the machines are working continually; equipment breakdown is a constant problem. Rest assured- anything that constantly pumps out water and has other gizmos to wash and dry the car is prone to deterioration.

However, the car wash business is lucrative when well-planned. So if you are considering opening a carwash business, here are some tips.

The Car Wash Business Can Be Dirty

It will help if you have an easy-going personality if you want to run a car wash business. If you are a suit-and-tie person, the chances are that you might have a more challenging time. The car wash game is a business that requires getting your hands dirty. It is all about equipment maintenance, water, soap, and waste. Every once in a while, you will need to replace the equipment. If you do not like getting your hands dirty, then best seek another business venture.

Car Wash Cost Analysis

Startup costs for a car wash business are not small. Even the most basic self-service car wash with one bay can cost anywhere from $30K- to $80K. The automatic in-bay car washes can cost a minimum of $400K, plus the additional cost of the equipment, which can vary from $200K-$400K.

Get To Know The Car Wash Business

If you have never been involved in the car wash industry but want to open a business, we recommend acquiring some practical knowledge of running a car wash business. You may want to go and work or observe a car wash business for a few weeks or months to understand some of the business’s critical operations. Going to a good car wash is about getting your car quality clean. You need to become familiar with the equipment, the problems that can occur, and the financial aspects of the business. The more you know about the business before starting, the more likely it will succeed.

What Are The Drawbacks Of Operating A Car Cleaning Service?

Continual maintenance and repairs of the equipment
Competition
Seasonal business and weather dependent
Not selecting the right equipment the first time around.

Because the car wash industry has many components, including delicate equipment, a significant negative is persistent breakdowns. And while repairs are underway, there is no income. Plus, depending on the type of equipment failure, it can often take days or weeks to get the parts. The key is to get the right equipment from the proper manufacturer the first time around. Because repairs are costly, you should have emergency funds available.

Attend A Car Wash Convention

To get an idea of what is new in the business, and speak to the experts about their thoughts on opening a carwash business, attend a car wash convention. However, remember that just because innovation is common does not mean it will quickly result in success with a carwash. Here are a few of the best car was conventions

Is A Drive Through Car Wash A Good Business Venture?

There are several car wash designs, each requiring a different investment. The profits will depend on the size of the car wash and traffic. Small self-service car washes can easily make a profit anywhere between 30K-40K each year.

The automated in-bay car washes can generate about $125K gross income PA, but the profit margins are around 20-25% with high overhead.
The more extensive luxury car washes can make ten times that each year. However, in all cases, startup costs are high. The overall net profits vary from 10-30%. You definitely will not become rich overnight, but the business will thrive if you offer quality service.

Here are a few design companies specializing in car wash equipment

Car Wash Business Plan

Once you have decided on a carwash business, the next thing is to make a plan. A plan will better understand the industry and help anticipate future issues. The business plan should include the following:

Should I buy an existing car wash or build one from scratch?
Should I buy a car wash that comes with a gas station?
Should I purchase an automated car wash or a self-service?
Where will I open my car wash business?
How many people will I employ?
What will I charge for my services?
How will I accept payment?
What are the negatives of opening a carwash?
How much profit can I make with a carwash?
How can I make my carwash more profitable?
What are the startup costs for a carwash?
What equipment and tools will I need to open a carwash?

There are some handy services available online

Some business plan templates that you should consider include:

Small Business Administration, SBA

SBA Website

How Can I Increase Profit In My Car Wash Business?

You can offer detailing, waxing, and interior cleaning to increase profits. Some car washes also provide an annual inspection.

Choose The Right Car Wash Equipment Supplier

The key to success in the car wash business is selecting a good manufacturer. You must install the equipment correctly, and regular maintenance is vital. Equipment failure is the Achilles Heel of the car wash business. A warranty and a maintenance plan are essential.

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Startup Cost For A Car Wash Company

Because there are several car wash concepts, coming up with one figure is impossible. The self-serve bays with equipment can cost anywhere from $40K- to $80K. The in-bay automatic systems depend on many features, including speed, and usually start at $200K. Thus one is looking at around $300K minimum. Plus, there is the cost of accessory equipment and employee salary.

Finance My Car Wash Business?

Banks and lenders are sometimes reluctant to offer big loans for starting a car wash business during these unusual times. As banks begin to provide loans again in the post-Covid era, you will need an excellent credit rating and no other debts.

Here are a few of the standard business banking options available online

Other options for financing include

Venture capitalist
Crowdfunding
Credit unions
Borrowing from family and friends
Even though small business loans are available, this involves a lengthy bureaucratic process, and the loans are small.

Here are some more options

No matter which lender offers you a loan, you will need to have a moderate amount of your own money to get started in the car wash business.

Small Business Administration

The Small Business Administration, SBA has a program to fund new startups and is worth a look

Types Of Car Detailing Companies

Self-service car wash designs are the simplest to operate. The owner drives into a bay, inserts cash or card into a machine, and begins the car wash. The machinery then cleans the car, and it’s all over within 3-4 minutes. Some self-service car washes will supply drying towels for a few extra dollars. Customers have many options, including high-pressure wax, foam brush, and tire cleaner. These self-service car wash companies usually charge around $10, but they are the least profitable unless you operate ten or more continuously busy bays. However, a single unit can cost from $40K- to $80K.
Roll-over (in-bay automatic) car wash is also typical and consists of a building that is 60 feet long and 18 feet wide. The vehicle remains stationary, and the equipment moves around the car. These rollover washes are very popular, especially in the winter. Most of these operate at gas stations. They are expensive to buy, and so is the equipment.
The tunnel (conveyor) car wash is also popular. The car is pulled onto a track and towed by a conveyor belt. As the vehicle moves slowly forward, the stationary equipment cleans the vehicle. The tunnel car washes tend to be 150 feet long and 30 feet wide. Before the finish, a large fan heater is used to dry the car.

These automatic car washes are fast, economical, and save water. The cost of cleaning can vary from $8-$20. Cleaning the tires, wheels, and undersurface or using extra wax comes at an additional cost.

More Car Wash Options

Soft Touch Car Wash uses a cloth to scrub the vehicle. Another option is a no-touch car wash that utilizes water under high pressure. Both these options are available in automated car washes. They offer more thorough cleaning and are slightly more expensive than the regular car wash.
By hand car wash is where a team of washers scrubs the vehicle with soap and water, ensuring that all spots and debris are removed. These car wash techniques are rare nowadays.
Waterless Car Wash uses a spray mixture with high lubricity. They spray liquid on the car, removing all dirt during the wipe-off. Waterless car washes are less messy and give the vehicle a nice glossy look. The dry car wash is prevalent in areas where water use is restricted.

Car Wash For Sale

While you can build a carwash from scratch, this can prove costly. Another more practical option is buying an existing car wash. However, you must first check out the location to determine if the car wash is busy. Next, you must look at the business finances to decide whether it has been profitable over the past two years. Check out online reviews and speak to other businesses in the area about the business’s reputation. Finally, you should also determine if there is room for expansion in the future. A third option is to buy a car wash associated with a gas station. However, this is also more expensive and will require an understanding of the gas station business.

Should I Build A Car Wash Company from Scratch?

The overwhelming consensus on building a car wash from scratch at the moment is a resounding – NO. In the post-Covid Era, the future is unpredictable. With millions of people unemployed and thousands of businesses closed, there is a tremendous risk in starting a carwash from scratch. Even if it is an ideal location, it is doomed to fail without traffic. The best advice is to be patient and see what happens in 2023. If businesses begin to operate and unemployment numbers drop, you can perhaps consider building from scratch.

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Car Wash Location

The key to success with a carwash is the location. First, you need to ensure that no other car wash companies are nearby. You can quickly check this out by doing a google search of your area. You’ll need to be centrally located and in an area with heavy vehicle traffic. An ideal location is near a gas station, a car repair shop, a giant retail mall, or a plaza. The location should also have ample free parking as many people like to dry and polish their cars after the wash.

A good rule of thumb for the car wash business is that the area should have at least 30,000 cars pass by in 24 hours to succeed. Also, the speed zone on the adjacent roads should be less than 45 miles per hour so that the driver can quickly scan the area. Finally, ensuring that the road permits a right-hand turn at your location is crucial. This can be a big deal because many drivers will move on if they can’t make a right-hand turn.

A carwash business needs solid planning. Thus, working with a local realtor, attorney, and the local zoning department is essential to ensure that the area is perfect for the business.

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Best Location For Car Wash Businesses

Daily traffic count; the volume of cars passing by should be at least 30,000 vehicles in 24 hours.
The Speed zone should be less than 45 mph.
Accessibility- making a right-hand turn into the car wash and having ample parking.
Population density: Close to businesses and residential homes
Visibility- Should be visible from a distance
Competition- limited or no competition within a 2-mile radius
Demographics: usually, young people are more likely to get their car washed regularly
Psychographics; best located near a plaza, major retail store, car repair shop, or some busy businesses
Sunnyside of the street
Lots of land space to park the car

Car Wash Marketing

Try some of these marketing ideas

Create a website, and promote your services, hours of operation, location, and contact information. Keep the site active by posting new information and discounts.
Go Social
Distribute flyers in the neighborhood
Make a Youtube video of your car wash business
List your business with multiple agencies
Distribute your business card to local garages, repair shops, and used car dealerships

Your Car Wash Website

The domain name protects your website address on the internet. You can register a domain name with the hosting company you choose to buy it from

Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

How Can I Make My Car Wash Business More Successful?

Offer vacuum cleaning services
Offer carpet cleaning services and equipment
Use equipment that does not damage vehicles
Offer free Wifi
Be friendly with all your customers, and they may spread the word about your business.
Encourage family and friends to pass the word around
Maintain your equipment with regular servicing
Encourage all customers to write reviews online
All negative reviews should receive immediate attention
Open early and close late
Start a loyalty program for regular customers
Go Social

If you are new to the car wash business, consult with others, and listen to what the experts say. Try to know what equipment you will need, who will repair it when there is a breakdown, how you will set up payments and point of sale, and security measures to protect your establishment. You also need to find out what type of car wash will bring you the most success.

Car Wash Business Profit Margin

Car Wash profits depend entirely on the volume of cars coming to you for a wash. On average, it costs anywhere from $6-$20 to have a car washed, depending on the type of wash. Profit margins are about 20%-30%. Maintenance of the equipment, utilities, and employee salaries account for the most significant expenses.

The Most Profitable Type Of Car Wash

Anytime you offer full service, profits will be higher. Including detailing, each car can bring anywhere from $30-$125. However, most owners go to the self-service car wash, where profit margins are more diminutive. The conveyor belt car washes are also profitable, but take-home profits can be lower because of constant machinery breakdown.

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Car Wash Staff / Crew

Because car wash hours tend to be longer and equipment malfunction is typical, finding reliable staff can be challenging. But finding dedicated employees who are willing to work all hours or be available 24/7 can be very difficult. At least one person must be available if customers run into problems. For example, a car owner may find that the cash machine accepted the money but did not turn on the device or that the conveyor belt has broken down with a car already on it. Someone has to be available to solve the problem. Therefore, you should train the employees to deal with minor troubleshooting issues.

Hiring staff will depend on the type of car wash you operate. Even if the car wash is automatic, you will need one person on call to oversee the car wash operation and another individual to accept payments and manage issues. If you open a self-service car wash with 4-6 cubicles where the owners wash the car themselves, you will still need one person during the day to oversee the running of the business. Most self-service car wash companies have a cash box or mobile payment service. You will only need to ensure that the water is running and that the detergent and supplies are plentiful. Plus, if you have a cash machine operating the wash, you must empty it twice a day.

Staffing agencies that you may want to use:

Car Wash Service Equipment And Supplies

Here are a few car wash supply companies

No matter what type of Car Wash you operate, the essential supplies and tools will include:

Blowers
Brushes
Buckets
Buffer
Buffer Heads
Car polish
Coin payment
Detailing Supplies.
Dryers
Garbage collectors
Leather Restorer
Microfiber Cloths
Mobile payment system
Soap
Stain remover
Steam Cleaner
Towels
Vacuum cleaner
Water repellant
Window Cleaner.
Wax

Car Wash Service Equipment And Supplies

Here are a few car wash supply companies

Conclusion

The covid pandemic has put a dent in many businesses, and the car wash industry is no exception. While cars need to be washed, the best recommendation is to invest in self-service equipment. The profits may be low, but these have proved to be the most durable in times of economic difficulties.