Car Wash Business 

Car Washes
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self service car wash
car detail business

Car Wash Business
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The Car Wash Business has been around for as long as there have been cars. A car is usually a reflection of the individual and most people want to keep their cars clean just like they would like to wear clean clothes. As a business, there are several car wash business models and one should explore different options to suit one's lifestyle and financial capacity. For example, some might find the Self Serve car washes a more attractive operation because of it's relatively low level of maintenance and it's continuous cash flow. Whereas full service car washes require substantially more investment, labor and customer service but resulting in much higher income. Others prefer the Mobile Car Wash operation, which is best suited for small business operators and require mainly labor and a relatively low investment in equipment.

Before starting a Car Was Business the following should always be considered.

Return On Investment - ROI

As a rule of thumb, a Car Wash Business that requires lot space and substantial investments in equipment should aim for a 15-20% annual return on investment or the equivalent of 5 to 7 years to recoup the total initial investment. A small mobile car wash business could see it's total investment returned in 1 year due to the absence of the substantial initial investment.

Car Wash as a Part Time Business or Absentee Operation

You can run a Self Serve Car Wash with as little as 3 hours per week, mainly to check the condition of the self serve bays and to collect money from the coin changers. This options is very attractive for people who have other business to run or simply see this business as an extra source of income. On a smaller scale, some people choose to have a mobile car wash and operate it on a part time business. Which is ideal for a small operation that does not require a location or hired labor.

Tax Benefits

The amount of equipment in a Car Wash Business is substantial and therefore one is able to use depreciation of equipment against income, which implies favorable tax benefits.

Car Washes in Times of Recession

Car Washes are not fully recession proof but people still enjoy having their cars cleaned. Recessions usually force car owners, especially in lower income brackets to cut back on expenses such as a Car Wash. However, car washes are seen as a necessity to many because of the self image attached to one's car, therefore there will be always an abundant supply of customers.

Cash Business

Car Wash Business that are Self Serve are all car business, which in itself is very attractive to many.

Labor Skill Requirements

Labor for Car Washes usually requires minimum skills, therefore labor costs are on the low end and there is usually an abundant supply of laborers. One can opt for part time workers or full time and equipment repair can be done at reasonable prices.

Inventory

Car Washes technically do not need much inventory as the machines are the primary reason customers come to a car wash. Inventory would include car was soap, towel to dry cars, and other items to enhance cosmetics of a car.

Easy to Sell

Car Washes are highly in demand because many people understand the basics of operating a car wash. Therefore, an advantage of having a car wash lies in the fact that one can sell it at an attractive price in a relatively short amount of time.

 

The information on this site was was compiled after consulting with several car wash industry veterans. If you are an industry expert and would like to share information, please email us at vclemail at gmail dot com.

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