Car Wash Business Overview

A car wash provides professional cleaning services for vehicles, transforming dirty cars, trucks, and SUVs into clean, shining vehicles. From removing everyday road grime to addressing winter salt deposits and seasonal tree sap, these businesses maintain and protect vehicles through specialized cleaning processes. The industry has evolved from simple manual washing stations to include sophisticated automated systems, premium detailing services, and membership-based business structures.

The car wash industry continues to grow as more vehicle owners choose professional cleaning services over home washing. This shift stems from busier lifestyles, environmental regulations limiting home car washing, and advances in professional cleaning technology. Most car washes operate daily, with many facilities offering extended hours or 24-hour service to accommodate varying customer schedules.

The car wash industry includes several common business models:

• Self-service: Facilities provide customers with the equipment and supplies to wash their vehicles themselves, attracting those who prefer a hands-on approach
• Tunnel Wash: Large facilities where vehicles move through an automated system on a conveyor belt, allowing for high-volume operations that can clean many vehicles per hour
• Roll-over/In-bay: Systems keep the vehicle stationary while automated equipment moves around it, making these installations popular at gas stations and smaller locations

How Do Car Washes Make Money?

Car washes collect payment for each vehicle cleaning service, with rates varying based on the wash package selected. Basic exterior-only washes typically start at lower price points, while premium packages, including services like undercarriage cleaning, tire shine, and protective wax, command higher rates. Express locations focus on high-volume exterior cleaning, while full-service facilities offer more extensive cleaning options.

These businesses also bring in money through additional services and products. Many locations offer interior cleaning, vacuum stations, mat washing, and detailed hand-finishing services. Monthly membership programs provide unlimited washes for a recurring fee. Additional income sources include air fresheners, cleaning products, snack machines, and automotive accessories sold on-site.

Some facilities partner with gas stations or quick-lube services to create combined service locations. Self-service locations generate income from coin-operated or credit card-activated washing bays and vacuum stations, where customers purchase time blocks to use the equipment.

Industry Statistics

Car wash services are part of NAICS code 811192: Car Washes. A few statistics for this industry include:

Car Wash Industry Size & Growth: The car wash services market reached $14.7 billion in 2024, with projections showing an expected rise to $16.95 billion by 2030. The industry demonstrates steady expansion with a projected annual growth rate of 2.1% through 2030. This continued growth stems from increasing consumer focus on vehicle maintenance and environmental regulations that limit home car washing. The rise in automated payment systems and the adoption of new technology also support market expansion. The shift from home washing to professional services continues, with over 70% of car owners now using professional car wash facilities. The industry showed resilience after pandemic-related slowdowns, bouncing back through enhanced cleaning protocols and new service offerings. (Grand View Research)

Number of Car Washes: More than 80,000 professional car washing establishments operate across North America, cleaning approximately 8 million vehicles daily. In-bay automatic facilities make up a significant portion of the total, with about 29,000 locations, while self-service locations account for roughly 36,000 facilities. The market includes both independent operators and growing chains like Mister Car Wash, which continues expanding through acquisitions and new location openings. Roll-over/in-bay operations hold the largest market share at 42% of total revenue. (Grand View Research)

Car Wash Average Profit Margin: Car wash operations typically maintain profit margins of 7.8%. Automated facilities often achieve higher margins due to lower labor costs, while full-service locations may see lower margins but higher total revenue per customer. (IRS)

States with Most Car Washes: The northeastern region shows particularly strong growth in car wash facilities, driven by urban expansion and weather conditions that necessitate frequent vehicle cleaning. Areas with harsh winter conditions or high pollution levels tend to have higher concentrations of car wash facilities. The market for 24-hour car wash services continues expanding in both urban and suburban areas, particularly in states with larger populations and higher vehicle ownership rates. (U.S. Census Bureau)

Also See: Ideas for Naming a Car Wash

Costs To Start a Car Wash

The cost to start a car wash can vary significantly based on location, size, and the services offered. However, it’s generally safe to say you’re looking at a range between $150,000 and $1,000,000 for a small to medium-sized operation.

Here are some of the most common costs to consider:

Location: The property purchase or long-term lease will likely be one of the largest upfront costs. The cost varies tremendously based on size, location, and existing structures on the land. Equipment such as conveyors, dryers, vacuums, water reclaim systems, and cleaning solutions average $200,000 to $500,000 for a full-service wash. Buildout costs, including permitting, utility connections, contractors, and waste treatment systems, can add $50,000 or more.

Equipment: Equipment costs are another major consideration. For a self-service car wash bay, the equipment costs for pressure washers, vacuums, dryers, etc., range between $8,000 and $10,000. Equipment costs can be significantly higher for an automatic car wash bay, with tunnel and support units ranging from $50,000.

Permits and licenses: To operate, you’ll need various permits and licenses, such as building permits, business licenses, and environmental permits. Depending on local regulations, these can cost anywhere from $1,000 to $10,000.

Initial inventory: Soap, wax, towels, and other cleaning supplies will be needed. A starting inventory may cost around $1,000 to $2,000.

Initial marketing: A grand opening campaign might include local ads, flyers, and social media marketing. Budget at least $2,000 to $5,000 for initial marketing efforts to get the word out.

Insurance: The upfront cost for insurance, such as general liability and property insurance, can range from $2,000 to $4,000.

Professional services: Legal and accounting fees for setting up your business structure, contracts, and financial systems can add another $1,000 to $3,000 to your startup costs.

Miscellaneous costs: Uniforms, signage, and a point-of-sale system can also add to your initial costs, so set aside an additional $1,000 to $5,000 for these items.

While buying or leasing existing car washes lowers some start-up costs, renovations, and new equipment are usually still required. Self-serve washes need around $50,000 for basics like wands, vacuums, soap vending, and minimal utilities.

Bear in mind that these are just estimations, and the actual costs can vary based on many factors. It’s always a good idea to conduct thorough market research and financial analysis before starting a car wash business.

Resources
International Carwash Association
Mid-Atlantic Carwash Association
Midwest Carwash Association
New England Car Wash Association
Southwest Car Wash Association
Western Carwash Association