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car wash
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Jared
Thursday, 24 March 2022 / Published in Blog

Things to Consider When Starting a Car Wash Business

A car wash is a lucrative business endeavor, but it’s not easy. If you want to run the best car wash around, you need to take ownership of it. Follow the advice in this article or hire a consultant who will guide you. You can then decide whether or not the car wash business model is right for you or not.

There are four categories of car washes. They are:

1. Tunnel

2. Self-Service

3. Automatic

4. Home-Driveway

You can start a successful car wash business in any of these categories. Every category has its own advantages and disadvantages, but the investment amount is higher for the tunnel startup with the highest revenue.

How Much Should You Invest in a Car Wash

The cost of a car wash is calculated on three factors: the cost of land, the cost of equipment, and the cost of utilities. The labor cost is also calculated. But if you are starting a car wash on your driveway, the labor cost will be zero.

The cost of land is the most important as it makes up for 40 per cent of the total investment to start a business. A standard car wash business space is about 2000 square feet, with a capacity of 15 to 20 cars per hour. If your land cost exceeds $90,000, then you might not get a viable ROI.

As for the typical equipment like self-serve bays, it will cost approximately $15,000 to $25,000. For bay-in automatics, the price may range up to $135,000.

For building costs, it may take about $100,000. A tunnel car wash will need 5,000 square feet and each square foot will cost about $250.

Depending on your geographical position, the cost of utilities will range from $2,000 to $3,000. The cost depends on the size of your car wash. If you are located in an urban location with high electricity costs, then the cost will be higher. If you are located in suburbia with lower electricity costs, then the cost will be lower.

Include the labor cost for your business and you get to a final investment cost.

Other Tips You Need to Remember Before Investing in a Car Wash

Features:

A car wash is a cleaning and maintenance facility for vehicles. It is an establishment that offers professional washing and detailing services for motor vehicles. Car washes are usually located near roads and highways so that customers can easily access the shops. Car wash services are available for all types of vehicles, including cars, light trucks, ATVs, boats and RVs.

Startup Costs:

Car washes require a few pieces of equipment and some basic supplies. Pricing for car washes can range from $30,000 to $500,000, depending on the size of the car wash and the types of services it offers.

Target Market:

Popular car washes include those located near residential areas and those located near busy highways. Most car washes are located at gas stations, car dealerships and shopping centers.

Competition:

There is a market for basic car wash services, but the market for more complex and higher-priced services is getting stronger by the day.

Trends:

The growing trend of in-bay automatic car washes may help to increase the number of car washes. The in-bay automatic car washes are more affordable and customer-friendly than tunnel washes.

Conclusion

Car washes are a great business to have. If you want to start a car wash, then you need to be ready to learn as you go. We hope this guide has given you some insight to the things you have to prepare for your car wash business. 

CCW Solutions can build and design car washes and provide commercial car wash equipment in Canada. Contact us today to discuss the build plan for your business now. 

What you can read next

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Why You Should Choose a Drive-Thru Car Wash
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A Comprehensive Guide to Tunnel Car Wash Systems
5 Ways to Keep Cars Lined up at Your Car Wash

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