Editor’s note: This article was first published in July 2018. The car-wash prices it cites are 2018 figures for Spain, and the waiting times and staff numbers reflect the author’s own observations at that time.
Is it profitable to set up a hand car wash business? The truth is that you can make money from the first day you open, with minimal investment, but of course that’s if you do it simply as a way of earning money and skip a few steps. If we decide to take this kind of activity more seriously and avoid problems, things can get a little more complicated.
So let’s look at how you can set up this business and the type of licences you need if you decide to run it as a formal company.
We’ve all seen them at petrol stations: either the typical self-service car wash, where for a few coins you can wash your car yourself with a pressure hose until it gleams, or a more precise washing machine that does all the work for you.
For me, and for many other people, that’s not enough. I like my car to be washed on the outside and left like new on the inside.
See also: 30 small but profitable business ideas
I drive 35 km to get my car washed, and I have to book an appointment two or three days in advance, because the business’s 12 employees can’t keep up.
I don’t go to another car wash 25 km from home because there are only four of them, and sometimes the owner tells me the whole month is practically booked up.
So I’ve noticed that this kind of business is in high demand among customers.
Starting a car-washing business is very simple and requires hardly any investment
It doesn’t need big premises or a lot of expenses. You can start it in your own garage at home or in a warehouse.
I’ve watched them leave a car looking like new in less than 10 minutes. While one person washes the outside, another is inside cleaning the interior, and a third is washing the mats and getting the dust out of them.
When they’ve finished, they put some air freshener in the car and leave you a card with their phone number so you don’t forget to call them next time.
Potential customers for this business are as varied as can be:
- Private individuals
- Company cars
- Lorry drivers
- Used-car dealers
- In short, anyone with a vehicle.
You can give your car-washing business added value by offering a pick-up and delivery service. The possibilities for this business are endless and the investment is minimal.
In Spain, the price of this kind of vehicle-cleaning service ranges between 12 and 17 euros. Would you pay that to feel like you’re driving a brand-new car? To be honest, yes.
If you were looking for a profitable business idea that needs little investment and no previous experience, this could be your idea.
If you decide to start a business like this, remember that advertising at the beginning is important; word of mouth will take care of the rest.
See also: 37 small businesses you can start with no investment and plenty of profit
Where can you start this car-washing business?
We’ll get to the warnings shortly, but the truth is that I’ve seen several entrepreneurs start this business in their own garage. One of them worked alone, and was no less efficient for it when it came to leaving the car spotless. Admittedly, he took longer and even charged a bit more: around 17 euros.
The result for this entrepreneur was that, if you wanted him to wash your car, you sometimes had to book two weeks in advance because every hour of his day was already taken.
Drawbacks of this business
Although we’re talking about starting this kind of business as a way of earning money, whether part-time or full-time, the truth is that environmental regulations, at least in Spain, can already mean you run into problems if you carry out this commercial activity in your home garage. You need to get proper information from your local council about whether this business is viable and which permits you need to set up a car wash.
What licences and permits do you need to set up a hand car wash?
Bearing in mind that all this varies from country to country, in Spain at least, the first step should be to visit your local council’s planning department; from there, they will guide you through the permits you need to set up your car wash.
This kind of business falls under “activities classified as harmful” because of gas emissions, noise and vibration, and because of the discharge of chemicals such as polishes, gels and soaps, as well as oil residues and other kinds of dirt. That’s why, if you decide to do it formally, you’ll need a technical expert to guide you through the process so that you comply with every regulation to the letter.
So, in principle, to start a car-washing activity you’ll need:
- A building works project
- An activity project
- An electrical project
What you should ask your local council, however, is whether, since it’s a car wash where cars are cleaned by hand, some licences or permits could be skipped.
Other ways to have your own car wash
The other options are setting up a fully fledged company and having a unit with all its permits and licences in order. Nor should you overlook the possibility of buying a franchise, or partnering with a mechanic’s workshop or another kind of partner who already has a business where your service could add value for both of you.
See also: 18 business ideas you can start with no investment
Featured image: Car valeting in Newcastle by Jonathan Hutchins, CC BY-SA 2.0, via Wikimedia Commons.
