How much profit does a car wash make?
A car wash is a volume business with high fixed costs. Once labor, rent, loan costs and upkeep are covered, most of each extra wash is profit. The example builds a $1.5 million express wash that washes 150 cars a day at $12. That's 4,560 cars and $54,720 a month. After $2.50 a car in water, power and chemicals and $30,000 a month in labor, rent and upkeep, it keeps $13,320 a month and pays back in 9 years 5 months.
Cars per day decides whether a wash works. The example covers its fixed costs at 3,158 cars a month, about 104 a day. At 100 cars a day, it loses $1,120 a month. At 200 cars a day, it keeps $27,760 a month and pays back in 4 years 7 months. That's why operators study traffic counts, visibility and nearby competition before they build. Each extra car adds $9.50 to profit.
Much of a car wash's return comes from the land and building. The example assumes you can sell for $900,000 after 10 years. With that sale, it returns 67%, or 8.3% a year. If the property were worth nothing at the end, the return would fall to 7%, or 1.3% a year. If you lease the site instead of owning it, your start-up cost falls, but rent goes into the monthly costs and there's less to sell at the end.
Price and memberships move the numbers fast. Raising the average wash from $12 to $15 lifts profit to $27,000 a month. Many express washes sell unlimited monthly plans, which smooth out slow, rainy weeks. For a membership model, enter your expected average revenue per car, including members' visits, as the price. Use the sliders to test volume, price and costs.