Executive Summary
Purpose of this Guide
This self-help guide has been designed for members of the Australian Car Wash Association (ACWA) to assist in planning, launching, and growing a successful car wash business.
By working through the guide and completing the Customisation Tables for each section, you will form your car wash’s business plan that can be printed.
It also contains a sample Profit and Loss, allowing you to create a budget and track projected cash flow.
The Car Wash Industry – Overview
Background
Australia's commercial vehicle washing industry has undergone a significant evolution over the past five decades, marking a period of substantial growth and potential for new ventures.
In recent years, a growing number of investors have shifted from single-owner car wash sites to multi-site ownership, reflecting the increased opportunities within the sector.
The industry now includes a wide variety of car wash types, ranging from automatic, self-serve, and tunnel washes to hand washes and full-service washes. Many businesses also operate combinations of these types to cater to diverse customer needs.
The car wash customer base has significantly expanded, transitioning from a primarily young male demographic to a more diverse range of customers. The Australian Car Wash Association Consumer Study, completed in October 2023, provides high-quality data on these changing demographics, enabling business owners to tailor their services more effectively.
The Consumer Study reveals that since 2018, In Australia, there has been a significant increase in the % of consumers that wash their car at a car wash most often + a 13% increase. However, Australia still lags behind America when it comes to car wash usage. This shows there is plenty of upside when it comes to car wash usage in Australia.
Moreover, Australia's expansive immigration policies and increased population density, especially in urban areas with higher rates of apartment living, have contributed to the industry's rapid growth. Car owners, particularly those in densely populated cities, rely more on professional car wash services due to limited access to home washing facilities.
Australian Car Wash Association members have access to the IBISWorld | Car Wash and Detailing Services in Australia Report. Whilst ACWA provides these reports as a service to members, we recommend using caution when relying on these reports (the data and interpretation are somewhat “funky”); they are available in the members portal of the ACWA Website.
The car wash industry benefits from a strong public focus on water conservation, as commercial car washes minimise water use and ensure proper wastewater treatment, in contrast to home washing, which can contribute to stormwater pollution.
It's crucial to note that all commercial car wash sites must adhere to local regulations, including wastewater management, to ensure water is appropriately recycled or directed to the sewer. Meeting these standards is not only essential for environmental responsibility but also for business success.
The Car Wash Business Concept
The services offered at a car wash might include a mix of manual and automatic car washing bays, express tunnels, hand washing services, vacuum facilities, and additional services such as dog washes, car care product vending, and even bolt-on services like cafes, laundromats, or other businesses that can be integrated into the car wash facility to provide additional value to customers and increase revenue.
The Economic Drivers
Two key economic drivers for car wash businesses are:
I. The potential capital appreciation of the property
II. The profitability of the business itself.
Members should carefully consider the advantages and disadvantages of owning the land, equipment, or simply the trading business, as each scenario has different financial implications.
The Opportunity
Commercial car washing remains a thriving and expanding industry in Australia.
By drawing comparisons to the more mature US market using the Australian Car Wash Association Consumer Study, which contains data on both markets, we can see the immense growth potential of the industry.
This growth potential presents opportunities for new ventures and business expansion.
