Average Investment Returns for Car Wash Operations

If you are looking for new and lucrative business or investment opportunities, you’re probably interested in creative ways to boost returns in your portfolio, consider investing in car wash operations. Investing in a car wash can be a profitable investment opportunity indeed. Whether you invest in self-serve or standard car wash, the investment margins work out very well indeed. Self-serve eliminates the need for numerous staff, for self-serve operations, you only need about two workers to maintain the cleanliness of the site and to ensure everything is running smoothly. In standard car washes, there’s no shortage of good labor who are also attracted by the potential of good tips from customers. As far as car wash operations go, they are fairly straightforward investments, you don’t have to worry about the seasonal factor. They are easy to manage from the operator’s standpoint, no need to stress about office politics, co-worker dynamics and many other factors that stifle other business opportunities. With car washes, there are minimal personal issues, straightforward inventories and little maintenance requirements. Car wash operations also have low direct operating costs, and fixed costs, such as insurance, with minimal bookkeeping needs. They are indeed a high yield opportunity combined with 24/7 and all-season demand.

Though the following information is as accurate as can be under the circumstances, factors such as equipment and land prices, demographics for different areas of the country, and each investor’s personal expectations make it extremely challenging for these guidelines to fit every situation.. Once familiarized with the subsequent information, potential investors should have ample background to start researching equipment manufacturers and distributors who will be able to provide precise information such as pricing, equipment needs, and construction requirements.
Proven research indicates that on average, standard car wash operations wash over 30,000 cars per year which translates to about 3.5 cars per hour based on a 24 hour day, 365 days per year. The average sale is approx $7.85 which projects to about $225,000 per year. Profit per wash averages a healthy $5.75 per wash or over $125,000 annually. Once investors decide the car wash industry is a great opportunity to capitalize on, they need to execute a unique business strategy and plan. Choosing the right location is the most important to step in running a successful operation. A projected traffic count from 1,000 to 3,000+ cars/day is desirable, but lower traffic sites can still prosper given the highly attractive margins. A site should be highly accessible and visible from the street. Corner lots, access from both sides of the street, multiple driveways, and separate entrances and exits all make a site more accessible. Demographics play a key role, being in a growing community, near a residential area (apartment complexes and housing developments), and surrounded by other convenience businesses is perfect. Weather conditions in the region also come into play. Zoning laws and competition of course needs to be carefully calculated. Access to utilities and equipment considerations also factor into the equation for overall investment return.