There are over 80,000 car wash businesses in North America, almost all of these in the United States. So why would anyone want to start another one?
Because business is booming. The U.S. sector currently washes 8 million cars a day, or 2 billion a year. The industry was valued at $14.9 billion in 2024 and is expected to grow to $19.8 billion in 2031.
The average car owner washes their car 12 times a year, and in the past decade, 70% of these drivers moved from washing their cars at home to using a car wash. So starting a car wash business is an attractive option.
That said, as with any business, success will require research, planning and good execution.
No matter what kind of business you are launching, you as an entrepreneur will need to establish what you want to achieve with this new business, what the business structure will be, and whether you have the resources to finance it. Like other businesses, a car wash could be relatively cheap to set up or, depending on the circumstances, require significant investment. The business model will also determine the running costs, management input and the expected revenue.
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There are three main kinds of car wash operations:
Self-service
A self-service car wash is the least costly to set up, and easiest to run, but generates the lowest revenue. It basically provides a safe, weatherproof venue where car owners can use professional tools, cleaning products, and equipment to wash their cars to their own standards. Most such washes also offer interior vacuuming and even upholstery shampooing.
Roll-over/In-bay
This is a compact set-up that gives the customer the full car wash service but in a more confined space. These installations are quick and convenient, and normally use industrial brushes, water jets, and can go to waxing machines, foam washes, and vehicle drying.
Tunnel Wash
This is the most expensive operation to set up and run and can generate the most revenue. It requires significant space because the vehicle is placed on a moving track and passes through stationery machines. Tunnel wash operations can be fully automatic or have some degree of human interaction as well.
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Market Research
Most people setting up a car wash have a specific area in mind. If they are to be the owner/manager, this would most likely be near their home. The ideal area would be on a busy road between the residential and commercial areas.
Once an area has been identified, look at what is already in the area. There is no benefit to building a new business in an area with several car washes already operating and well-established. But a careful look at what exists in the broader area may give insight into what car wash format would work.
If there are three tunnels operating, that could be the way to go, or it could mean an opportunity for a self-service or in-bay option. This is where you need to get advice from a commercial vehicle wash systems company with a presence in that area. On the other hand, if there are no car washes or just a couple that do not look very busy, the traffic in the area may not be sufficient to justify an investment there.
Buy or Build
You can buy an existing business or build your own. There are benefits and drawbacks to each option.
Buying an Existing Business
The upside of acquiring an established car wash is self-evident. All the infrastructure is there, it is known in the area, and there are the necessary water and environmental permits a car wash needs to operate. It also means a quicker move, from purchase to operating at full speed.
The downside means you will pay a premium for an operating business, the machinery may not be the latest and most cost-effective, and there may be hidden reasons why the owner is selling what should be a profitable business.
Building Your Own Wash
There are downsides to building your own business from scratch: Purchasing a property, clearing it, getting the building permits, getting the wastewater and water use certificates, and finally building and equipping your business will take time. You will have to start putting finances in place long before you can expect any revenue.
Whether you risk your own capital or get bank finance, you will have to draw up a well-constructed business plan to make sure you know where you are going and how you are getting there.
The upside to building your own is that you can create your own dream. You can stamp your personality and business sense into what you build, and you can make sure the equipment is fit for purpose and the staff is motivated and aligned with your values.
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Marketing and Generating Business
Starting a new business does not end with operating premises and eager staff to serve the customers. You first have to find and attract new customers, and then find ways to keep them coming back.
You should put up signs and drop flyers in your target areas. Offer a free wax with the first wash, or a discount on the first wash. But this must happen online as well. An effective online presence will be way more effective than a poster in your window.
Online Presence
Even though there is nothing more bricks and mortar than a car wash, your online presence will make or break your business, from acquiring new customers to getting repeat business.
At the very least you should have a Google Business Profile. Most customers check their phones to find a new business near them, or to see when one they know will be open.
Maintain an online presence. Many business owners are not comfortable or even very good at maintaining a good social media profile. That is because online marketing is a specialized skill, and there are agencies that excel in this. The good news is that online marketing and social media are way cheaper and far more effective than traditional media.
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Turning Customers into Regulars
Estimates vary, but consensus suggests that it costs five times more to get a new customer than to get repeat businesses from an established one. Repeat customers are also way more likely to spend on special offers. Offering excellent service and great prices is obviously very important, but you can do more online.
A Loyalty Program
Loyalty programs reward customers for repeat business by offering a reward for doing so. You can do the traditional cardboard thing, but that is less effective than an online app. Not only can the customer scan their phone to collect rewards, but they can also use it to book a wash, to get into a queue, and be notified when there is space for them. An app like this can store and retrieve a customer’s details and preferences when they enter the business and be used for hassle-free payment after the wash.
Final Thoughts
A car wash can be a brilliant investment. Once established, the revenue and expenses can be highly predictable, and you can find a source of income or a way to supplement your salary in this way.
One should be aware, though, that running a successful car wash is hard work. Customers’ loyalty does not extend much beyond the first bad experience. In some states, there is also a seasonal variation in business, as some customers would bring their cars in winter, but enjoy washing it themselves in good weather.
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