As an investor, you have probably driven by a car wash in the past and thought, “Are car washes a good, profitable business?” Recent trends nationally show positive numbers in the car wash industry. But when it comes to investing, you have many factors to consider starting with a key question as to whether to buy land and build from the ground up or purchase an existing car wash operation. Let’s first talk some numbers:
- Get to know the Average Profit per Vehicle (APV) for an In-Bay Automatic Car Wash. This typically will range from $4 per vehicle to upwards of $5 and higher based on retail cost of each wash, fixed and variable overhead, etc.
- Next, make it one of your goals to know the local area as well as possible. This includes weather (approximately 45% of car washes occur on the weekends), traffic patterns, demographics — everything you can get your hands on.
- Start gathering numbers on existing car washes in your region to learn what’s working and what may be not — and Turnkey Automotive Solutions can help you with all investor needs as well as analysis both before you make the move as well as after.
- More than 2 billion cars are washed each year in North America and nearly 1 billion in Europe. Car wash retail sales are approximately $15B in North America, so the macro numbers are there, but all that has no bearing on an individual car wash business.
Wondering what kind of experience you may need to own and run a successful car wash business? According to the International Carwash Association (ICA), 37 percent of car wash owners have owned their business for less than five years.
Given that there are more cars on the road than ever before and the fact that more states and municipalities are enforcing regulations that prohibit car washing due to water restrictions and to prevent waterway pollution, considering a car wash business may be an extremely profitable endeavor, but make sure you partner with only a top car wash development firm, such as TAS. A quick punch list to keep in mind:
- Location, Location, Location
- Compliance Laws & Requirements (locally and nationally)
- The Car Wash Build — Assessing Equipment, Supplies, etc.
- Operations — Automation vs Human Hands — What Is Your Car Wash’s Business Model?
- Equipment, Supplies, Maintenance — Keys To Success
- Financing Options, Ongoing Operations, Maintenance, etc.
TAS has the vast experience, knowledge and turnkey staff needed for any car wash investment plus the coverage to fully operate and maintain your business well into the future. Do you prefer to be a hands-off owner? No problem, let us know your focus and we can partner with you plus any investment group to plan, build out and operate your profitable car wash business.
Additionally, given our extensive experience in commercial construction, we are extremely well versed in local market requirements, both ground-up as well as existing car wash business investing and here to help you speed to the finish line (or in this case, the starting point), and all within budget.
TAS can advise you on every aspect of building and expanding your car wash business and our comprehensive, turnkey process includes literally everything — from site selection and configuration to planning, permitting, financing assistance, car wash system selection and construction management — all the way through to operations and maintenance.
Once your car wash business is up and running, rest easy as TAS delivers your turnkey service and support solution including our extensive network of factory-trained service techs, maintenance packages and turnkey car wash support including chemical monitoring and delivery services to keep your car wash cycling customer vehicles along with profits.