A car wash may look like a very simple or straightforward business, but it’s not. But beside it being a lucrative venture, it’s really more than meets the eye. How much does it cost to open a car wash, then? Read on to find out more.
The Average Cost to Start a Car Wash
The cost to start a car wash can be a few thousand dollars if you are targeting just the basic type of hand car wash. This assumes that you already own a space for your business.
The average size of a typical car wash usually runs around $1,000 square feet. However, there are some that exceed $2,500 feet.
If you don’t own land yet, it would cost you around $42,000 to $80,000 per bay. This already includes the cost of the land and the construction of the car wash.
However, if you want either a self-service car wash, auto detailing, an automatic car wash, or perhaps touchless washing, prepare to spend anywhere from $200,000 to possibly a million dollars or more.
It may be best to build a small car wash first, but a lot of professionals recommend that you build a larger one. The reason for this is that it is easier to expand your business when it becomes very successful.
The average time that it takes to completely build a car wash is around six months for a big and sophisticated car wash facility. During this period, you are still not earning money, and you will need your funds to flow out until your business is up and running and you have some revenues.
Below are the major cost components of a car wash business beside the actual equipment needed in the operation. Please note that the actual costs still depend on the size of your car wash, and the below figures apply to bigger and more sophisticated car wash businesses:
- Permits, architectural, engineering, traffic studies, and appraisals can cost around $50,000 to $100,000.
- Other site work such as earthwork, landscaping, asphalt, and foundations can cost around $200,000 to $300,000.
- Electrical and plumbing work can cost around $350,000 to $500,000.
- The security system can cost around $5,000 to $15,000.
- The required environmental waste management system can start at around $35,000.
- Insurance and security systems against potential accidents and other risks cost around $500 to $15,000.
Factors Affecting Cost to Start a Car Wash
When it comes to starting up your car wash business, there are a lot of things to consider. A few of these are discussed briefly below.
- Size of car wash
The investment you will need will also depend on the size of your planned car wash. Based on these, every cost component will be directly proportional.
- Type of Car Wash
Building the right car wash in the area to supply the needs of the customers is the best way to make your business a successful one. Understandably, your choice of whether to offer a hand car wash or an automatic service will dictate the kind of equipment you will need to purchase.
Obviously, you would need a higher outright investment when targeting the latter because you need to purchase the right equipment to get the specific job done.
- Equipment type and brand
Another factor that you will need to consider when opening a car wash is the equipment needed. The cost of car wash equipment depends on the brand, the type of equipment you want to have, and the type of car wash you want to build (automatic or self-serve).
Average car wash owners spend around $400,000 to $500,000 for the complete equipment of their business.
- Buying land
The best lots to buy are those that do not have any structures on them. But if the land you bought has pre-existing structures on it, then you will have to factor in the cost of tearing down the structure and debris removal.
You will also have to consider the location of the land. The best location for a car wash is on busy streets. However, the cost of land in this area may be higher than in other areas.
Buying land usually costs around $3 per square foot, and this varies from one location to another. Average car wash owners usually spend $100,000 to $250,000 for the land alone.
Your total price to start a car wash also includes the site work. And this greatly varies depending on the size and type of your car wash.
The majority of the components of the car wash start-up are similar in different locations. But of course, the cost will definitely vary depending on the cost of living and the cost of doing business in a particular area.
Add to that the fact that regulations in different locations around the country make everything more varied in terms of permits, which can significantly affect the overall costs.
Tips for a Successful Car Wash Business
Now that you have an idea of the cost of starting up a car wash, the next thing you should know about are the different strategies to make your business successful. Here are some tips:
You will need to consider the area where you want to build your car wash. The best way to know if your location is suitable is by driving around the area. You should check the traffic, other businesses in the surrounding area that may have a connection to your car wash, and possible competition.
You should really pay close attention to your competitors and what they offer their clients. It might be your chance to improve your service to make your customers satisfied and encourage them to consider coming back.
Doing thorough research about the car wash industry is another great way to make your business successful. You should research a lot of successful car washes and learn how they do things in their own way.
Another good tip, especially for people who have just started a business, is to look for thriving car wash companies. You should search for their operations, policies with the staff, their equipment, their customer management, and basically what makes them successful. Taking notes from them can be a good starting point.