Thinking of expanding your portfolio by investing in the car wash industry? Owning a car wash can be a profitable addition to your work. Many car washes are owned by small business owners who started their investment journey. In fact, only 10% of car washes are not owned by small business owners. It may be time to invest in the car wash industry and all the opportunities it has to offer. Sands Investment Group has the resources to help aid you in your purchase decision on why you should invest in the car wash industry.
Reasons To Invest:
With summer just around the corner, the car wash industry will be in high demand. According to onedesk, 66% of car owners who live in the U.S. will get their vehicle washed anywhere from one to two times every month. Car owners have decreased their use of at-home washes and have rather utilized car washing facilities.
While there are factors that dictate your income such as location and size, you will be investing in a market that is highly demanded by consumers. Location of your potential car wash is an important factor in determining the pros and cons of a car wash ownership. Different types of car washes will also require different finances such as down payments and space. Investing in the car wash industry is appropriate when it meets your goals, but not if you would be uncomfortable with its upkeep and par value.
While there are many factors to consider in your purchasing decisions, here at some potential outcomes when a car wash is run correctly:
Increase Your Income
Owning a car wash gives you an increased revenue as there is a high volume of customers. According to Hedges & Company, 2022 is estimated to have 289.5 million registered cars in the United States. 20,000 cars washed in one year can bring you an average revenue of $139,000 alone. On average, car washes charge $15 dollars per car. This would not include additional add-ons that may be available. Investors can make a large profit off of the recurring income that the predictable consumer demand brings to the car wash industry.
Owning a car wash will provide a safe and profitable investment. When car wash owners see the increased revenue, many decide to open other locations. They may add on a gas station for sale if space is allocated. According to Brandon Gaille, approximately 65% of car wash stations also dispense gasoline. This would also add new opportunities for growth and increased revenue within your investment. With this eagerness, you can create your own car wash brand on numerous sites.
Added Real Estate Asset
Owning a car wash also adds to your real estate portfolio. When owning this car wash real estate you are receiving a passive income but also a premium return. Owning this real estate asset also offers a resale potential. After making your decision to invest in a car wash, you can decide to sell the real estate/business down the road to fund your retirement or bring in more profit.
How To Invest:
If you are interested in investing in the car wash industry you have two options. You may purchase an existing car wash or start from scratch. However, if you start from scratch, a SIG Car Wash advisor can help you complete the following steps:
- Prepare a business plan: decide if investing is right for you.
- Pick a car wash business type: full-service conveyer enterprises, express drive-through sites, and self-service establishments with bays.
- Pick a location.
- Check location for zoning and local regulations.
- Cover financing needs: Paying in cash or using funding to cover the investment purchase, upgrades, and expenses up to at least one year.
Consult A SIG Car Wash Advisor
Thinking of investing in the car wash industry? The investment opportunities hold limitless growth. Join SIG at The Car Wash Show in Nashville, TN on May: 5/9- 5/11. Become an attendee or make an appointment with a SIG member at the conference! We will be located in booth #556.
If you’re looking to invest in the car wash industry, get in touch with a SIG advisor. Our experts can help you find the right car wash property for your portfolio. SIG is home to experienced brokers that are designated experts in all areas of CRE, including car wash real estate.
Among its listings, Sands Investment Group offers several car washes that are guaranteed by a large company or a dominant regional operator. These car washes are set close to major roads and offer favorable demographics such as nearby retail stores, companies, and universities. They also offer long-term triple-net (NNN) leases of 15-20 years and attractive cap rates that range between 6.25%-7.5%. Contact the team by calling 844.4.SIG.NNN or check out our current car wash listings to get started with your car wash investment.