Car Washes
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 18,520 car washes in the US provide washing, waxing, detailing, hand washing, and self-service washing of cars, trucks, vans, and trailers. Companies may also perform scheduled and preventative maintenance or body repair. Operations generally involve three types of car washes: conveyor car washes, in-bay automatic car washes, and self-service car washes. The industry includes regional chains, franchises, and independent operators.
Capital Investment
Automated car washes are capital-intensive and require a sizable investment in equipment.
Express Washes Explode
The number of express wash facilities has grown dramatically, driven by vehicle owners looking for faster, less expensive options and car wash owners looking for more economical alternatives.
Industry size & Structure
The average car wash operates out of a single location, employs fewer than 10 workers, and generates about $1 million annually.
- The car wash industry consists of about 15,640 firms that operate 18,520 establishments, employ 182,000 workers, and generate $16.2 billion annually.
- The industry is extremely fragmented; the top 50 companies account for 20% of industry revenue.
- Large companies include Mister Car Wash, Take 5 Car Wash, ZIPS Car Wash, and Autobell Car Wash.
- The industry includes regional chains, franchises, and independent operators.
Industry Forecast
Car Washes Industry Growth
Recent Developments
Mar 28, 2025 - Tariffs Set to Raise Operating Costs
- According to the International Carwash Association (ICA), new tariffs on goods imported from China imposed by the Trump administration in 2025 are expected to increase operating costs in the car wash industry. Many chemicals used in car washes, including basic cleaning agents like detergents and surfactants, are sourced from China. As a result, car washes may want to adjust their sourcing to keep input costs under control. Additionally, according to a Car Wash Insight report by Raymond James, tariffs on imported car wash equipment could further raise operating costs. Car washes may absorb the additional costs or pass them on to customers. Also, customer traffic at car washes could be affected if inflation continues or worsens, leading consumers to reduce spending amid uncertainty surrounding tariffs.
- Consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty, according to a report in CFO Dive. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer confidence fell in March 2025. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”
- According to a Q1 2025 Pulse Report from the International Car Wash Association (ICA) reported by Car Wash Magazine, subscription growth is at a record-breaking pace in 2025. However, members report they are less certain they will renew in upcoming months. The report shows that customer price sensitivity and resistance to price increases is tempered by favorable value perceptions. Per ICA Research Director Bob Klein, “While membership growth and customer satisfaction top the charts, future expectations are more conservative as we move further into 2025.”
- A new comprehensive survey on customer acquisition by Carwash.com found that word-of-mouth (64%) was the most popular and effective method of attracting new customers followed by social media marketing (47%) and direct marketing (37%). The survey, sponsored by DRN, noted that the dependence on customer referrals makes it important for car washes to maintain a high quality service. Other strategies used by car washes include billboards and other public-facing channels (21%), traditional media such as TV or radio (16%), no marketing or acquisition efforts (8%), and partnering with sports teams/events (7%). When asked about challenges, survey participants cited economic factors (51%) and high competition (44%) as primary obstacles to acquiring new customers. Efforts cited as supporting customer acquisitions include improved marketing tools (47%), better digital presence (37%), and training and development (33%).
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