Now that we’ve covered how to start or buy an automatic car wash, we will dive into the pros and cons of owning a car wash so that you get a more complete picture of what’s really involved in this business.
Here are the pros and cons of owning a car wash:
| Pros of Automatic Car Wash | Cons of Automatic Car Wash |
| Car washes can be profitable | Car washes are expensive |
| Car washes can be passive | Seasons and weather affect profits |
| Strong demand for services | Car wash repair costs can be high |
| Independence | Competition is high |
| Scalability |
Pros and Cons of Owning a Car Wash
Pros of Owning a Car Wash
Car Washes Can Be Profitable
We have already discussed the profit potential for an automatic car wash, so I won’t cover that again.
The bottom line is that if you own a well-run and well-maintained car wash in a great location, you can make serious profits each year.
Car Washes Can Be Passive
Owning an in-bay automatic car wash can be a fairly passive way to make money. Like any business, it will not be completely passive (you will need to maintain the equipment and make sure things are running smoothly in your business).
But you will not really need to actively interact with employees or customers (for the most part).
People just pay for their ticket, pull into the bay and the machines do the rest.
That type of automation is a huge difference between this and other types of businesses.
Strong Demand For Services
As I mentioned at the top of this article, people love their cars and there are a lot of cars on the road.
All of them will need their cars washed at some point and most will be happy to pay for the convenience of having someone else do the dirty work.
Independence
If you have your own business, you do not answer to anyone. Hard to put a price on that.
Scalability
Scaling or growing an in-bay automatic car wash is fairly easy. You can start off with a couple and add more as your business grows (subject to there being enough room on your lot to do so).
If you run out of space, you can expand to another location and replicate your success there.
Cons of Owning a Car Wash
Car Washes Are Expensive
Whether you want to start a car wash from scratch or buy an existing one, the cost is going to be high. As we discussed already, the average start-up costs for an in-bay automatic car wash are $260,000.
Buying an existing car wash is not going to be cheap either. When I looked on bizbuysell for car washes across the country, the cheapest ones that seemed somewhat decent were over $300,000. But most were much more expensive, some hitting close to $10 million!
Whether you choose to start one or buy one, it’s going to be a big investment, either way, so you will need some serious financial resources to enter into this business.
Seasons and Weather Affect Profits
I discussed this topic at some length already, so I won’t go through it again. In short, you should save and be prepared for seasonality and the occasional bouts of unfavorable weather.
Cash Wash Repair Costs Can Be High
Your car wash equipment is expensive and constantly in use. There are strong cleaning agents involved. So repairs are going to be inevitable as the machinery malfunctions or breaks from time to time. While some repairs may be simple and cheap, others will be quite expensive.
You should be prepared to cover those expenses as they arise by putting aside money for that purpose.
Competition Is High
In any business where there is significant profit to be made, you are going to find serious competition. Car washes are no exception.
The competition can take the form of a nearby car wash upgrading its equipment to draw away your customers, mobile car wash services popping up to service customers in your area, or a new mega car wash opening up in your neighborhood.
Whatever form it takes, the risk of competition can’t be ignored. It’s part of the business and you need to effectively manage it.
What do you do? Stay vigilant, assess what your competitors are doing, and try to stay a step ahead (or at least keep pace). Don’t get complacent – it is tough to replace or win back lost customers.
Keep your customers happy with up-to-date and working equipment, fair prices, and a great experience, and they will keep coming back.
Conclusion
Owning a car wash, especially an in-bay automatic car wash, can be a terrific way to earn passive income and get out of the rat race.
