How much do car wash owners make?
The idea of starting a car wash business could be lucrative. More than 70% of car owners within the U.S. frequently use professional car wash services. Cars washed by conveyors are the most profitable service.
However, starting an auto wash conveyor will require a larger investment. While many different kinds of car washes are less costly, to begin with, they’ll earn smaller profits.
Therefore, many people ask how much money can you make owning a car wash on average. The answer isn’t straightforward, as the amount you earn will depend on many aspects.
If you’ve thought about hiring an app development company to start a car wash business, you’re in the right spot. In this article, you’ll learn about the factors that impact a carwash owner’s monthly or annual income.
We’ll also look at the profitability that car wash owners make based on the kind of car wash they manage.
Interesting Facts About the Car Wash Market
This car wash industry is considered an elite service that has generated the most revenue over the past decade.
The year 2017 saw the business produce $800 million in revenue, steadily increasing over the previous four years. Car wash applications have proved to be among the most profitable business methods, and company proprietors are realizing the rewards.
The evidence is clearer when looking at industry or market patterns data. According to research, about 65% of owners utilize the car wash app frequently.
Every year, car wash apps such as “Washe” make an average of $4.1 million. In addition, the car wash application business has created jobs for many people and is growing at a rate of 35% per year.
The need for convenience has been addressed with the rise of the industry.
The United States car wash services market is projected to have a significant CAGR of 5.5% by 2033.
According to reports, the U.S. car wash services market was estimated at USD 15.21 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030.
Reasons Businesses are Investing in Car Wash Business
At present, among the frequent uses of the app is for car washing. The public has been anticipating the launch of mobile application development services that allow them to reserve car wash services without visiting the dealer’s facility regularly.
The app’s accessibility and range of services have increased the trend of utilizing similar apps in the future. According to a study, approximately 60% of the population would prefer an online booking system for car wash reservations.
Investors and entrepreneurs are offered an array of options for financing due to the increase in app use.
The trend of on-demand isn’t going out of fashion in the near future, and many businesses are investing in hiring car wash software development companies to create on-demand car wash solutions, making these apps an excellent investment.
Top Car Washing Apps Ruling the Market
The increasing need for on-demand solutions grows as more companies put their money into app concepts that will simplify cleaning services for cars. Many companies are offering mobile apps to provide car wash services.
However, the following top car wash apps stand out among all the others:
1- Washos
Washos is a specialist in luxury car detailing using a modern mobile platform, offering a range of payment options and regional service suppliers.
Washos also offers its loyal customers additional features, like virtual car diagnostics and record tracking, through its smartphone app, which provides a unique, on-demand, water-free car detailing and cleaning service.
Uniquely, with each completed Wype service, the business gives away a gallon of clean water to charity water, which helps in conservation efforts.
2- Spiffy
Spiffy, like Wype, offers a wide range of services via their mobile app. With the help of advanced technological advancements, Spiffy provides zero-contact car services that are delivered directly to the customer, whether they are at home or work.
With their website, mobile phone, or the iOS/Android application, users can plan services like car washes and detailing, oil changes or disinfection, tire services, and brakes at the click of a button.
3- Qweex
Qweex is an advanced auto wash on-demand service that utilizes modern technology to offer an easy experience.
Customers can easily book a user-friendly car wash via their user-friendly app by entering the details of their vehicle, its location, and time preference.
Using cutting-edge mapping techniques, including Google Maps, smoke signals, and astrolabe, Qweex’s highly skilled technicians will arrive at the specified spot within the scheduled timeframe, fully equipped to complete the car wash without electricity or water.
4- Washify
Washify’s Washify Car Wash Point-of-Sale (POS) and Management System is a cutting-edge solution to automating and scaling car wash companies.
Their cutting-edge offerings include Washify X Station, a modern, high-end pay station that accepts cash or digital payments and incorporates license plate recognition for simplified, endless applications.
This system runs on a cloud-based platform, allowing users to access reports, implement pricing changes, and search customer data from anywhere around the globe.
Washify also provides an Android or iPhone application for a more pleasant customer experience and automated email marketing features.
Factors Affecting Income of Car Wash Owners
In addition to the type of wash used, different aspects can impact how much a car wash costs a year. Here are some of these:
#1: Seasons and Natural Disasters
A car wash could slow down in the rainy season or during natural disasters like earthquakes or hurricanes; however, it could thrive in spring, with the abundance of pollen, or during winter when salt accumulates.
When you begin an auto wash business, avoiding areas prone to natural catastrophes is best. Carwash owners should estimate their profits based on the weather and follow a financial plan to prevent them from falling into the debt cycle during unprofitable times.
#2: Marketing
Another factor that could affect the income of a car wash is marketing. Marketing isn’t only about increasing customer numbers and profit.
It is crucial to keeping customers returning to your auto wash and attracting new customers.
Facebook and Instagram are the most popular social networks (TikTok and Instagram specifically), and bookings on websites, posting notices, mailing out flyers, placing up attractive signage, and yellow page advertisements are just some strategies to market your company.
#3: Location
The location of your car wash company is a major factor in its performance. Customers often discover the car wash they frequent by driving close to it.
If the location isn’t optimal, you’ll need to install visible signage from the road to draw the attention of the most desirable client.
#4: Recurring Expenses
Numerous recurring expenses can take away your profits in various ways. The kind of car wash that you choose to have is a major factor in all of these categories.
Here are a few of the most frequent expenses car wash owners have to deal with regularly:
- Taxes, salaries, and other benefits (automatic and full-service vehicle washes are only available).
- Taxes on business
- Items (cleaning polishes, products and waxes, rags, and more.)
- A mortgage or lease (for the building or site)
- Repayment of commercial loans
- Utilities (water, electricity, gas)
- Equipment repairs/maintenance
- Commercial Insurance
- Signage
- Beverages and food for customers (full-service only)
You may also have an annual renewal of your license and permit fees based on where your vehicle wash is located. All these expenses will be paid from your income, translating into lower profits and less income.
When you opt to start your car wash from scratch, you’ll have to pay certain significant:
- Acquisition of land
- Construction
- Car wash equipment
The three elements mentioned above could be costly depending on your location as well as the kind of car wash services you want to provide.
Different Automotive Wash Models and How Much Owners Earn from them?
The car wash profit depends on the kind of car wash run, the amount you will charge per vehicle, and the ongoing expenses accompanying it.
As a reference, we estimate that the annual average profit for automatic car washes in bays is $86,531.
It is important to note that this figure is for one kind of car wash and is not a true reflection of the actual earnings of other professionals in the car wash industry.
However, the expansion in the automobile wash industry is clear. As per Report Linker, the U.S. car wash industry is projected to grow to $20.74 billion in 2028. It is projected to increase by a CAGR of 4.8% from 2021 to 2028.
1. In-Bay Automatic
The average cost for this kind of auto wash will be $6.34, and the return potential is $4.35 for each washing.
The average case will generate an annual income of $139,000, equivalent to an average of $86,531 in profit. The auto-washing in-bay requires little space and can easily be integrated into an existing business, for example, an auto repair shop or a gas station shop.
Additionally, it doesn’t need much work since it runs immediately after the customer has paid and can enter the area. Most consumers are inclined to select car wash services online because they are cheaper and the procedure is quicker and more efficient.
In addition, bay services consume 10–50 gallons of water per vehicle, whereas tunnel services consume 14–60 grams.
2. Full-Service
The full-service car washes hold highest car wash franchise cost. However, it’s also the most economical. This kind of wash costs about $15, nearly twice that of a car wash-in-bay.
A full-service car wash can earn anything from $500,000 to $900,000. Per year in revenue. The full-service car wash provides both interior and exterior cleaning.
It also provides additional services like detailing and vacuuming for the inside of the car. The exterior service can be done in an indoor car wash or conveyor belt.
3. Exterior Conveyor
They put cars on a motorized track and then drag them through tunnels, where they are washed, rinsed, and washed, then rinsed and waxed.
The exterior car wash is the second-highest-cost type of car wash, following that of the car washes with full service. According to estimates, you could make an average of $686,250 annually with this kind of wash.
4. Self-Service
A self-service wash allows owners to clean their vehicles at their own pace. It doesn’t have to adhere to the rules and schedules of a traditional car wash.
Compared to the previous car washes, this kind of wash is less expensive and can earn around $489/month for each bay and an annual average of $41,000.
Obviously, it is much less than revenues from other car washes. But remember that this type of car wash comes with the lowest maintenance and staffing expenses.
Cost of Developing a Car Wash App
The on-demand car wash app development cost is based on several variables that are described in the following paragraphs:
- App features and complexity
- Type of team you’re hiring — Outsource, In-house or Freelance
- Geographical place
- Platforms for mobile apps and development methodology
- Integrations from third parties
- Support and maintenance for the app following the launch
- Testing and security of apps
Based on the mentioned elements, car wash investment cost could be between $15,000 and $30,000. However, this is only an estimate and can vary depending on your business needs.
The Key Takeaway
Ultimately, the profit of the car wash business depends on many variables, like the location, the size of operations, and whether the business is independent or franchised.
There aren’t any exact norms or guidelines regarding the profit car wash owners can expect to earn. Successful car wash businesses are highly profitable and provide the opportunity for a lucrative venture.
While a six-figure bottom line is impressive in car wash system development, it is crucial to remember that the figure is the potential earnings from just one wash at a standard car wash.
You could generate significantly more profit from the space by attracting more than the usual number of cars.
But everything depends on many variables. Remember that income and profit aren’t the same thing, and you must plan your business carefully and look at the details covered in this beginner’s guide to running car washes.
