Starting a Car Wash?

When thinking about starting a car wash, you need to know your options. Here are the four basic types: 

Type 1: Self Service Car Wash
This car wash business model is favored by many interested in starting a car wash business. Customers wash their own vehicles in individual wash bays. These bays can either have self serve equipment or in-bay automatic equipment in them. Starting a car wash business of this type offers the advantage of low labor costs and it can be open twenty four hours a day, seven days a week.

Type 2: "Stand Alone" Automatic Car Wash
When lot size is limited, a car wash business that uses only the in-bay automatic may be preferable. This model consists of one or two in-bay automatics and a vacuum and vending area. Primary considerations in starting a car wash business of this type should be based on local competition, demographics, traffic counts and lot size.

Today's automatic car wash systems fall into three basic categories: Touch, Touch-free and Conveyors. Here is a brief description of each category of automatic car wash equipment: 

• A touch automatic car wash uses cloth or a cloth-like material as the primary cleaning medium. The materials that touch the car can be cloth, polyfilament or, on the most advanced systems, a foam co-polymer material. .Touch automatic car wash equipment provides the best cleaning and, with the new technologies, is gentler on the vehicle.
• A touch-free automatic car wash uses chemicals and high-impact water spray to clean the vehicle. No other material touches the vehicle.
• A conveyor automatic car wash is usually a touch car wash system. The owner of the vehicle activates the system, and then a conveyor pulls the vehicle through the wash. This type of automatic car wash is designed for high volume locations and is more labor intensive.

Type 3: Car Wash and Convenience Store Combination
In-bay automatics and self-service car wash equipment can be a profitable addition to a convenience store operation, adding significant revenue to the entire operation.

Type 4: Full Service Car Wash
This car wash business option is a conveyor wash system with attendants. Anyone considering starting a car wash business of this type should understand that this model is labor intensive and more expensive than the other types.

The Self Serve Car Wash Turns Low Effort into High Profit

The fastest growing segment in the industry is self serve car wash equipment. Today's self serve car wash operator is looking for an integrated site where information on revenue, customer purchases, and trends are tracked. They are looking for a supplier that can supply all their needs; from automatics to self serve car wash equipment to vending products. They want a supplier that has the support team to maintain and market their location. At the end of the day the single most important factor in a successful self serve car wash business is the customer's perception that they received value for their hard earned dollars at your location.

Earn More with Self Serve Car Wash Equipment

Most self serve car wash installations now include single or multiple bays of automatic car wash equipment. With the cost of land and building construction, the selection of the equipment package becomes critical.

Questions and Answers

Do I need experience in the car wash business to be successful?
No. Some basic business sense, and the motivation to consistently deliver the highest level of quality service in order to maximize customer satisfaction.

Who do I start with in the process of building a self-serve car wash?
The best place to start is the equipment supplier. The potential supplier should be able to direct you to, or obtain for you, all the necessary resources to locate, design, build and market your car wash project. The equipment supplier will have experience with what services sell best in which areas and how to lay out your facility for maximum appeal. You should choose a supplier with demonstrated capability to service and support your business after completion and well into the future.

How long can I expect it to take to recover my Investment?
Obviously this can vary tremendously based on the success of your business. A good rule of thumb in the retail business world is a 15-20% ROI(return on investment) or a 5-7 year window. You should work within this window to build your business volume so that the profitability is rewarding after the initial investment has been amortized and to make the business attractive for potential resale, lease-out, refinancing, or as collateral for the finance of future projects.

What kind of financing is available for a car wash project?
As with any start-up business, capital can come from numerous sources. Banks tend to have the most attractive rates but the most demanding terms. SBA and other government subsidized loan programs are available and should be explored thoroughly. Venture capital can come from family, partners, or even venture capital firms. Equipment can typically be leased and there are tax implications to each type of financing. A CPA or financial advisor can be invaluable in helping to assess your options. You can expect to need up to 20% of the project financing in cash and be prepared to provide extensive business and personal financial information. Lending institutions will require a detailed business plan that will include proposed equipment quotes and projections of revenue and costs. Your equipment supplier should be able to provide much of this information.

How long will it take to build and start-up a self-serve car wash facility?
This will vary widely depending on the scope and location of the project. Be prepared to spend 3-6 months in the design to permit phase and another 3-4 months from permit to completion of the construction. Weather and contractor scheduling usually represent the biggest challenges. A number of activities must occur simultaneously so an experienced project manager and a detailed plan are essential. An equipment supplier that can provide a dedicated project manager is a tremendous asset and will prevent unnecessary delays and costs.

How much should I plan to spend to open a self-serve car wash?
There are probably more variables involved with this question than any other yet it is the most frequently asked question. If you are going to invest in a business your first question should be "How much money can I plan to make with a self-serve car wash?" The biggest mistake you could make is to under-build for the location since it makes it more difficult to evaluate or recover your investment and leaves the door open for a competitor to move in and take away your customers with a nicer facility. Again, a competent equipment supplier can advise you on expected costs based on the area, the scope of the project, and average or typical experiences of their customers.