Building a Car Wash

Building a Car Wash

A Car Wash is a great cash flow generator but requires a substantial amount of capital to start. Therefore, an investor should do all the necessary due diligence on location, demographics, expected ROI, etc. before making any investment decissions. Always consult with an expert in the industry and hire a lawyer for negotiating leases, etc. Never rely solely on brokers or equipment makers as their interest if to get people to invest and might not always have the investors best interests in mind.

As a rule of thumb, the building of a new car wash requires the following:

1. Because of the equipment involved and the land required to build a car wash, expect to invest anywhere from $120,000 to $150,000 per self-serve bay and $250,000 for an automatic bay. Full service car washes require tunnel wash and the cost will vary from $500,000 to $2,000,000 to finish the entire project that will include building and equipment.

2. Call the city in which you are planning to build to determine zoning and permit requirements.

3. An equipment supplier should be selected before the project starts to help with the design, permits, architects, and contractors. As equipment vendors they can also project financials, however, NEVER rely solely on a forecast by vendors on a new location as there are many variables to a business. Remember, their interest is to sell you equipment. In case your investment does not match projected revenues, there will be no liability on their part.

4. It is preferable to hire architects and contractors familiar with the car wash industry.

5. Contact the different utility bureaus for water, sewer, electric and gas to double check on availability and get it in writing.

6. Contact your city to obtain licenses to operate a car wash. Cities vary in their requirements and fees and you should be aware of them before making any financial commitment,