Car Wash Startup Cost
If you’re a Car enthusiast and willing to put in the effort, building a startup can help you earn some real money as the industry profit margins are pretty healthy. According to a One desk report, the industry generated over $5.8 billion in revenue in 2021. Furthermore, 8 million cars get washed every day by car washing service and the average profit margin per car is about 29 per cent, which accounts for $4.35 on a $15 ticket.
Building a business is not as easy as it sounds, no doubt the business has given a pretty high return on investment but takes a lot of courage, handwork, and consistency.”
The overall cost of the car wash business varies depending upon the type of car wash you want to open. It can go from as little as $8,000 per self-serve bay to up to $49,000 per automatic bay.
In this article, we will go through the requirements to build a startup and its average cost of Car Wash
1. Location
Location is the most crucial part of any business as it makes it more convenient for your customer to visit you over and over again. If you are planning to build a car wash startup you will have to acquire minimum land of 7,000 square feet for one bay which will cost you somewhere between $75,000 to $300,000 depending upon the location but if you are planning to open a full-service car washing plant you’ll need enough land to set up a waiting area for your customers. Once you have bought the land you need to pay for the construction work and landscaping which will cost you between $350,000 and 550,000.
2. Equipment
The automobile industry is booming as we see a great surge in the number of cars on the roads. With millions of cars around the globe, the car wash industry is growing bigger and bigger day by day and has an annual growth rate of 3.8% with more and more people trying to enter every day. In such a fast-growing industry with so many competitors in the market, you must be well equipped if you want to stay ahead of your competition.
No matter is one bay or full-service you certainly require the following equipment to start a car wash:
-Wastewater Treatment System – To recycle water and minimize water bills.
(Average Cost – $125,000 – $250,000)
-High-Pressure Cleaning Tool – To remove dirt from areas where vacuums or other equipment cannot reach.
(Average Cost – $250 – $5,000)
-Blowers/Dryers –To blow water off the vehicles after they have been washed
(Average Cost – $350 – $25,000)
-Payment Processing System- Handles payment transactions
(Average Cost – $800 – $1500)
-Signage –To market and promote your business.
(Average Cost – $100 – $3000)
3. Licenses and Permits
You must be aware of the license and permits required to establish a car wash business. Licenses and Permits vary depending on the state, county, and municipality. If you don’t obtain the required license and permits your state or municipality may shut down your business.
Following are the License and permit you should obtain before starting a business:
General business license
DBA (Doing business as) License
Zoning Permit
Environmental permit
Business Occupancy Permit
Conclusion
A car wash startup can be turned into a highly profitable business once you are armed with the right tools and provide the best customer service. The industry is a booming industry as most people don’t like to wash their cars. You can start a small self-serve car wash with very little money and eventually expand. In this article, I’ve mentioned essential requirements to start a car wash business so keep those in mind and build your first profitable car wash startup.
Frequently asked questions about startup cost:
1-How much capital do I need for a startup?
The overall cost of a startup depends upon several factors including land price, number of bays installed, location, and type of car wash. The average car wash business can cost around $150,000 to $500,000
2- How much money does a car wash make in a year?
Annual revenue generated by a startup depends upon the type of wash you own. On average small self-serve can earn $41,000 per year to $700,000 for a full-service luxury car wash.
3- How long does it take to build a from scratch?
The entire construction process can take anywhere from 6-to 18 months depending upon the type and scale of a car wash.
