I've been doing a bit of research on other business ventures, and was wondering what people thought of buying a carwash business. It would be the business only not the property. Net returns seem quite high on most, you don't have to pay staff (self serve not a hand wash, and also not a franchise) i understand up keep may be a bit higher, but on the ads I'm seeing net ROI of 14%-25%. obviously i have never owned one, would be great to hear from someone who has, or might have some advice for me. thanks!
14-25% profit on investment? Maybe, but what are the maintenance and capex requirements? How often do you need to service the machines and buy new ones? How much? I'm guessing replacing the machines is a fairly substantial cost, but I could be wrong
Yeah, remember you're just buying the business, not the property so the outlay isn't as much as a freehold, free holds are around 1m which is business and property, business only ranges from 150k-300k with rent around the 1000pw mark. I think a full replacement of one of the self serve machines was 5k.
I wouldn't have a clue, there isn't much info on the internet about it, which is why I put it on here for the info you've just given me have you looked into it yourself?
This is a curious idea for mine because I love my cars. I've not had a look at any existing businesses for sale though so wouldn't know what the feasibility is like. In my head it'd only make sense as a freehold business in a prominent location with future development potential and you'd have the business anchored in there delivering a reasonable return. I don't think the business model is entirely scalable in context of being a business/franchise only and opening up multiple as the market is quite saturated (pardon the pun). Again feasibility might suggest otherwise. Looks like some in the field have enjoyed the success of getting in early! Neighbourhood dispute resolution, Point Piper-style
@adam duckworth - I've had previous dealings with a guy looking to set one up - ended up being cheaper to operate with a sponge & bucket cracking the whip over a team of trained monkeys.
You've looked into ROIs but have you done any research on the industry itself? Compared automated machine type car washes to the manual physical labour type ones for example? Market share of each? Trends? Are there more or less automated types than there was 5 years ago? How significant is the Cash Lovers (self serve) model in the whole picture? Legislative changes? Business running costs? Licensing requirements? Servo lease arrangements? I think it's important to know that your hard earned dollars aren't being invested into an aging model or yesterday's trend. Research the market well, speak to people in the industry - current car wash owners, search the web for forums/discussions from people who are involved. This will give you some up to date & relevant info and whether it's worth investigating further.
Yeah I am in the middle of doing research as we speak, there are obviously a lot more coin operated washes now. I'll have a talk to a person I've come to know that owns one. I wouldn't be starting from scratch, I'd buy one that's quite established, maybe one with a coffee shop and dog wash, there is barely any info on the net, except for the franchise websites, which just talk it up to get you into their franchise (which I don't want a franchise) See i would rather it be machine operated so I dont have to over look a team, I already have to do that with my bricklaying company. So just check ups 3 times a week on the equipment etc, or pay a family member to check it for me lol.
I thought carwashes were for laundering money? In all seriousness, there is one up where I used to live. He gets easily $1k in coins a day for 4 wash bays and 2 vacuums (all self serve). He used to regularly pay for new locks / boxes because there was always someone with an angle grinder stealing his money at 2am. This is the big downside to it that makes him hate it (but it pays well so he keeps up with it).
haha might change my name to walt. yeah that would suck! the one that i go to to wash my car and get coffee has a big security fence around it, and i actually haven't seen a coin box.... i know his ones use cards now too which might be a good idea...
Tap and go, you might as well use technology to your advantage. If there's no cash, no cash handling issues.
yeah exactly, now if only the machines could just fix themselves you could nearly have a fully self running business
I just use a bucket, sponge, detergent, the garden hose & a minimal amount of elbow grease. I must be that boring old school type?
Well, I like the high powered vacuum, 3 minutes for a dollar is very useful for after you pick up heaps of sand after a beach visit or after a camping trip.
