As of 2024, there are approximately 80,000 car wash businesses in the United States, representing a total market size of $33 billion. But how profitable are car wash businesses? How much investment is required to start one? And what is the average turnover for a car wash?

In this study, we analyze the financial data from over 280 real car wash businesses in the United States to provide you with accurate, up-to-date answers to these questions.

The data, sourced from 2024, includes revenue, costs, and profit data from 280 car wash businesses, including some of the largest franchises in the US.

Whether you’re considering starting your own car wash business or seeking to understand the financial dynamics of the industry, this article offers a detailed look at the key factors that influence profitability and return on investment.

We’ll be exploring several key questions:

• How Much Revenue Does a Car Wash Make?
• How Profitable are Car Wash Businesses?
• How Much Does It Cost To Run a Car Wash?

How Much Revenue Does a Car Wash Make?

Looking at the real data from 235 car wash businesses, we found that full-service car wash businesses make $about $1,800,000 per year on average.

Instead, mobile car wash companies make about $300,000 to $660,000 in revenue on average.

Why such variations? Revenue is a factor of a number of factors, such as location and most importantly the type of car wash services a business offer.

Types of Car Washes

Car wash businesses can be broadly categorized into several types, each with its own revenue potential:

1. Self-Service Car Washes: These facilities provide equipment for customers to wash their own vehicles. They usually generate less revenue but have lower operational costs.
2. Automatic Car Washes: These are drive-through facilities where machines do the washing. They can handle a high volume of vehicles and typically generate higher revenue.
3. Full-Service Car Washes: These offer a comprehensive cleaning service, including interior and exterior detailing. They have higher operational costs but also command higher prices.
4. Mobile Car Washes: These services go to the customer’s location, providing convenience and personalized service. They can charge premium prices but may have limited capacity.

Average Revenue by Car Wash Type

Here is a list of the different types of car wash and their average yearly revenue.

Important: note that these revenue figures are per car wash bay. Hence the more car wash bays you own and operate, the higher the revenue.

• Self-Service Car Wash: On average, these car washes generate around $40,000 to $100,000 in annual revenue. The lower operational costs make them profitable despite the lower revenue per wash.
• Automatic Car Wash: These facilities can generate between $200,000 to $500,000 annually. Their ability to serve many customers quickly boosts their revenue potential.
• Full-Service Car Wash: These businesses can see revenues ranging from $500,000 to $900,000 annually. The higher pricing for detailed services contributes to the higher revenue.
• Mobile Car Wash: Annual revenue for mobile car washes can vary widely but typically ranges from $75,000 to $250,000, depending on the customer base and service offerings.

How Profitable are Car Wash Businesses?

Looking at verified data from 235 franchise businesses, car wash businesses report on average a 14-26% operating profit margin. Operating profit indicates the profitability after accounting for all operating expenses but before taxes and interest.

This table presents the key profit metrics for the selected car wash franchises.

Profit margin for a car wash varies significantly based on the same factors discussed earlier: location, the type of car wash (self-service vs. automated for example), and pricing of course.

Types of Car Washes and Their Profit Margins

Car wash businesses come in various forms, each with different profit potentials:

• Self-Service Car Washes: These facilities require customers to do the washing themselves using provided equipment. They typically have lower operational costs and can offer profit margins of around 50-60%.
• Automatic Car Washes: These are drive-through facilities where machines do the washing. They can handle a high volume of vehicles and usually generate higher revenue, with profit margins around 25-35%
• Full-Service Car Washes: These offer a comprehensive cleaning service, including interior and exterior detailing. They have higher operational costs but also command higher prices, leading to profit margins of 20-30%
• Mobile Car Washes: These services go to the customer’s location, providing convenience and personalized service. They can charge premium prices but may have limited capacity, with profit margins around 30-50%

How Much Does It Cost To Run a Car Wash?

Operating a car wash involves several key expenses that impact its overall profitability. Here’s a breakdown of the main operating costs for running a car wash:

1. Cost of Goods Sold (COGS)

Direct costs associated with providing car wash services include chemicals, water, electricity, and maintenance of equipment. These costs typically range between 10-20% of revenue. Chemicals alone, for instance, can cost around $0.64 per car washed, depending on the type and volume used.

2. Labor Costs

Labor expenses, including wages, benefits, and other compensation for staff, typically account for 20-30% of revenue. This includes salaries for attendants, managers, and maintenance staff.

3. Rent and Utilities

The cost of leasing or renting the premises, along with utilities such as electricity, water, and gas, usually amounts to about 5-10% of revenue. Utility costs can vary significantly based on location and the type of car wash equipment used.

4. Marketing and Advertising

Expenses related to promoting the car wash, such as online advertising, print media, and other marketing efforts, generally comprise 1-5% of revenue.

5. Insurance

Insurance premiums for general liability, property, workers’ compensation, and other necessary coverage typically range from 1-3% of revenue.

6. Supplies and Equipment Maintenance

Costs for maintaining and replacing tools and equipment, as well as purchasing consumable supplies, are approximately 2-5% of revenue.

7. Administrative Expenses

General overhead costs, including office supplies, accounting, and other administrative functions, account for about 5-10% of revenue.

8. Training and Development

Expenses for ongoing training and development of staff to keep up with industry standards and technological advancements are typically 1-3% of revenue.

9. Miscellaneous Expenses

Other operational costs, such as travel expenses, uniforms, and software subscriptions, usually fall within 1-3% of revenue.

Example of a Car Wash Profit-and-Loss (Fleet Clean USA)

Here is the profit-and-loss of Fleet Clean USA franchises earning about $330,000 in yearly revenue and reaching 16.1% in operating profit per month.

Note that as a non-franchise business you would not have to incur any franchise fees. Yet, as these franchise fees typically cover expenses paid by the franchisor (for example marketing, technology and so on), you would still have to account for these costs

Car Wash Financial Model Template | Excel Spreadsheet

Download an expert-built 5-year Excel financial model for your business plan

Trustpilot

See the template

Buy

Car Wash Financial Model Template | Excel Spreadsheet

Download an expert-built 5-year Excel financial model for your business plan

See the template

Buy