Have you ever wondered how much a car wash makes? Perhaps you’d even like to open one of your own. We’re going to show you how to start a car wash business.

Ten years ago, John and Thomas D’Eri started Rising Tide Car Wash to provide jobs for autistic people. Now, they own two car washes that make over $6M each year.

Learn how they created a thriving business by helping neurodivergent people get jobs washing cars. Along the way, discover how to open your own car wash, step by step.

You can either keep reading or click on any of the links below to jump to the section that interests you:

Learn About the Car Washing Industry

First, you’ll want to learn about the car wash industry by conducting market research. This includes researching topics like types of car washes and earning potential.

Types of Car Washes

There are numerous types of car washes that you can choose to start, including:

• Automatic car washes
• Self-service car washes
• Mobile car washes
• Manual car washes

Automatic Car Wash

Automatic car washes are physical buildings that use automation to reduce the number of employees. The cost to build an automated car wash will normally be more than any other car wash because of the additional systems used.

Self-Service Car Wash

These car wash businesses can be either partially automated or fully self-service.

Partially automated self-service car washes provide automated exterior washes and an area for customers to manually clean the insides of their vehicles. On the other hand, fully self-service washes are where customers clean both the inside and outside of the car themselves.

Mobile Car Wash

These companies are either hand-washing or pressure-washing companies that focus on washing cars. These are some of the lowest-cost car wash businesses to start. They may also be called car detailing companies.

Watch the interview below or read our blog about car detailers to learn how to start a mobile car wash business:

Manual Car Wash

This type of car wash business focuses on hand washing, drying, and manually detailing a car. You’ll just need some essential hand tools to get started.

How much does it cost to start a car wash business?

The cost to start a car wash business will vary dramatically based on your location and the type of car washing business you want to start.

A manual car wash business will normally be the least expensive. You can start with a bucket, some car washing supplies, and a vacuum. All these supplies normally cost less than $500.

Meanwhile, an automatic car wash may cost millions between land and the structure itself.

How much does a car wash business make?

The country’s 56,773 car washes earn a combined $14.6B annually, or an average of $257,164.49 per car wash. However, the revenue from a car washing business can vary dramatically.

For instance, John told us that they make $500K monthly across two locations. That’s nearly 12 times the national average!

You can attribute part of his success to his unique mission, but part of it is also the car washing strategies they use at Rising Tide Car Wash.

How profitable are car washes?

Car wash profitability will vary based on the type of car wash, but most car washes have profit margins of between 10% and 25%. Depending on the business model, expenses, and number of cars washed, they can make between $41,000 and $686,250 in profit annually.

Case Study: Rising Tide Car Wash

John was just graduating college, and his brother Andrew was turning 18 or 19. Their family knew Andrew needed help finding work because the job market wasn’t kind to disabled applicants.

They started looking for small businesses that are very process-based and can showcase the abilities of the autistic community. They also wanted an asset-based business so that they could recoup at least some of the cost if the business failed.

John tested his service business idea before taking out a small business loan to buy a car washing business. He told us:

It worked out, and John now owns multiple Rising Tide locations with a loyal customer base. Find out more about how they run their successful car wash in the interview below:

How to Start a Car Wash Business

Opening a car wash business can be a lucrative venture if done right. Here’s a step-by-step guide to help you get started:

1. Create a car wash business plan.
2. Create policies and systems.
3. Set up your business legally.
4. Choose a location.
5. Buy or build a car wash.
6. Buy car wash equipment.
7. Hire employees.
8. Market your car wash business.
9. Wash cars.
10. Comply with environmental regulations.
11. Maintain the company.

Now, we’ll break down each major step for starting a car wash business.

Step #1. Create a Car Wash Business Plan

A business plan should outline your goals, target market, pricing strategy, marketing plan, and financial projections. When thinking about how to start a car wash business, make sure to answer these core questions:

• What kind of car wash do I want to start?
• How will I differentiate myself from other car wash businesses?
• What services will I offer, and how much will they cost?
• How will I market my car wash business?
• How will I fund my car wash business?

Learn more about writing a business plan from our business planning guide or by watching our interview with Mike Andes below:

John made the mistake of not writing a business plan before starting a car wash. He told us:

While writing your business plan, take the time to do the following tasks.

Create a Pricing Strategy

Pricing can make or break any business. If you charge too much, no one will use your car wash. If you charge too little, you’ll lose money on every customer.

Depending on your car wash business model, you’ll normally provide basic washes, interior cleaning, detailing, and subscription plans. You’ll want to research your competitors’ prices to keep your car wash profitable.

Rising Tide uses a tiered pricing system for individual car washes. The lowest tier is for a “budget” wash, which includes a wash, rinse, and dry; the highest includes more advanced services.

For a flat monthly fee of $29.90 to $42.95, Rising Tide offers unlimited exterior car washes with discounts on interior cleaning.

Create Policies and Systems

One of the biggest challenges when learning how to run a car wash business is creating standard operating procedures (SOPs). You need clear guidelines for all aspects of your car wash operation, from customer interactions to equipment maintenance.

John told us:

Even if you aren’t hiring autistic people, you might find it beneficial to run your SOP by disabled or neurodivergent people to see if they have any suggestions to make your policies more accessible.

Some SOPs may be lengthy processes, while others may be as simple as a checklist for when you conduct routine maintenance. Learn more about writing effective policies in our blog about SOPs.

Step #2. Set Up Your Business Legally

This step of how to start a car wash focuses on creating a business entity. This includes getting business licenses and permits, tax IDs, business bank accounts, and insurance.

It’s important to protect both the business’s financial operations and your personal assets. For best results, work with a business startup attorney with experience in the field you’re entering.

Create the Business Structure

You can choose between legal structures such as sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Most companies opt for an LLC because they offer liability protection without all the hassles associated with corporations.

The main thing is that you have to keep business and personal finances separate to maintain liability protection. Check out our blog on business structures to learn more.

Once you’ve chosen your business name and the type of business, register it on your area’s secretary of state.

Get a Federal Tax Identification Number

Any business entity will need an employer identification number (EIN) from the Internal Revenue Service. This number is used for taxes, loans, and other business needs. You may also need a state tax ID.

Get Business Licenses and Permits

When you open a car wash, you must obtain the necessary permits and licenses. You may need both local and state licenses. If you intend to build a car wash, you’ll need building permits and inspections too.

Open a Business Bank Account

You’ll need a business bank account to maintain your limited liability protection, collect credit card payments, pay business taxes, and apply for a small business loan.

Car wash businesses that accept cash will need a local bank to deposit cash and get change. A card-only car wash can use an online bank that offers higher interest rates and better incentives.

Learn more about business bank accounts.

Get Business Insurance

Your business entity will need insurance, including general liability insurance and workers’ compensation. This will protect you if an employee or customer gets hurt at your car wash.

We suggest Simply Business for car wash owners who want the best small business insurance rates.

Step #3. Build or Buy the Car Wash

You’ll need to buy or build a car wash. Normally, it will be quicker and less expensive to buy a car wash business, but it might not be exactly what you want.

John has experience doing both. He told us:

Choose a Local Car Wash Location

You’ll want to look for a high-traffic location for your car wash. The car wash should be easy to see and access from the street.

Depending on your area, you may need to consider zoning laws or environmental regulations as well. Learn more about selecting a location.

As a new business owner, you’ll need to construct or retrofit the building to include washing bays, vacuum stations, drying areas, waiting rooms, and administrative space.

Buy Car Wash Equipment

Whether you’re replacing old equipment or building your new car wash from scratch, you’ll need to purchase high-quality car wash equipment. The major items include:

• Pressure washers
• Conveyor systems
• Vacuum cleaners
• Water treatment systems

You’ll also need soap, detergent, wax, brushes, and other cleaning supplies. Once you have everything you need to start a car wash, you’ll need to build out the car wash. John explained:

They work with Sonny’s for their car washing equipment.

Step #4. Prepare for Opening Day

Alongside your location hunt and build out, you’ll want to start preparing for the opening day of your car wash service. For most car wash owners, this includes hiring and training employees and getting business management software.

This is also the time to start marketing your company to the public.

Hire Employees

Most car washes need staff for customer service, washing, detailing, and equipment maintenance. John believes his hiring model is what makes Rising Tide different from other car wash businesses. He told us:

When hiring, John says he looks for shared values more than any other quality. He shares what matters to his business and sees if each applicant is a good fit.

He also suggests approaching hiring like a training program. Look at what tasks you need completed, and determine whether there’s a good process. Then figure out how to teach the process.

Next, bring people in to learn how to do it. This also removes risk from the process since you can test new methods before implementing any changes company wide.

Market Your Car Wash Business

Owning a car wash will require a combination of branding and marketing. A brand identity includes a logo, signage, and a professional website. John has put a lot of work into differentiating his brand.

The logo below demonstrates how the car wash supports autistic employees (represented by the puzzle piece):

In addition, the entire website is focused on how vehicle owners help make a difference by providing jobs to autistic people.

They use both online marketing and traditional marketing to attract car owners. John told us:

While many car businesses may not find schools to be a great marketing strategy, it makes sense for this full-service car wash. It gets them in front of autistic students and their families, which can help generate leads for customers and prospective employees.

Learn How to Use Google Ads Like a Pro

Google Ads can be a highly beneficial marketing platform, but you have to know how to use it properly.

That’s why we partnered with Jyll Saskin Gale, who teaches our Google Ads for Beginners course in the UpFlip Academy. Learn the best strategies to create winning Google Ads campaigns.

How to Run a Car Wash

The following sections include some of the daily activities you’ll need to do once you’ve learned how to start a car wash business and you’re running daily operations.

Wash Cars

Of course, these local businesses all focus on washing customers’ vehicles, but they each have their own unique considerations. For instance, automated car washes must keep the equipment in good condition and routinely replace the cleaning brushes to prevent damage to cars.

Different types of car washes may have different levels of customer service. Those that provide exceptional customer service at a reasonable price tend to be the ones that perform best.

Every car wash should have a loyalty program to increase its profit margin and keep people coming back. You might also want to provide an easy way to leave reviews.

Additionally, don’t forget to keep your facility clean for customers and employees. A clean facility not only looks better but is safer.

Comply With Environmental Regulations

Your state or city may have building codes that require specific technology to minimize water usage and prevent certain wastes from getting into the water supply. Check with both federal and local environmental agencies to learn what rules apply when you start car wash operations.

Monitor Financials

You’ll want to monitor your financial performance. Most small business owners prefer to use a combination of QuickBooks and customer relationship management software like HubSpot or ServiceTitan.

John told us:

Make Improvements

You’ll want to continuously improve your car wash to reduce the cost to run a car wash. Using key performance indicators to measure customer satisfaction, revenue, and expenses will help you make better decisions.

John also explained another aspect of identifying areas for improvement:

In other words, figure out what’s wrong with the system when your employees are frustrated.

Ready to start a car wash?

You now understand how to start a car wash, the cost to open a car wash, and many of the considerations when entering the industry.

We hope you enjoyed this blog. Neurodivergent people struggle with challenges many people don’t understand. Helping people succeed is a noble cause that touches many hearts.

Would you like to learn more about the perks and incentives for hiring disabled employees? Let us know in the comments below.