Car Wash Business 101: Equipment and Investment Requirements

*There is an updated version of this article here: Car Wash Business 101: Equipment and Investment Requirements 2018  

A car wash is a nice business to get into if you're into cars. We've already given you some tips on how to start a car wash business. Now, we're taking it further by getting to the nitty-gritty and discussing the numbers, so to speak.

Mr. Edwin Pasahol, Senior Trade and Industry Development Specialist for the Bureau of Small and Medium Enterprise Development (BSMED), gave us a general and estimated rundown of the equipment, costs, price options, and profit you'll get when you venture into this business.

INVESTMENT REQUIREMENTS (All prices are in PHP, and based on 2017 market prices)

A. Equipment

• 1 Pressure washer compact electric 1600 watts, 5.5 liters/minute – P6,700
• 1 Vacuum cleaner with blower, 750 watts 6 meter – P3,500
• 1 Power sprayer 1/2 horsepower, 26 inch – P4,800
• 1 Pressure tank 340 liters – P7,100
• 1 2-step ladder – P450
• 3 Drums (for storing water) at P390 per piece – P1,170
• 2 Hose at P335 per piece – P680
• 3 Pails/buckets at P90 per piece – P270

TOTAL – (P24,670) or rounded off: P25,000

B. Direct Cost (Materials and Supplies per Month)

• 3 pcs Chamois at P110.00 per piece – P330
• 24 pcs All-purpose rags at P5.50 for 4 pieces – P33
• 4 pcs Car sponge (big) at P45 per piece – P180

Sub-Total – (P543) or rounded off: P540

C. Supplies

• 60 liters Car shampoo – P8,690
• 15 liters Car wax liquid wax hi-gloss finish – P7,500
• 15 liters Tire black – P7,010
• 450 ml Car polisher/shine (for detailing) scratch remover ultra hi-gloss finish – P1,420

Sub-Total – (P24,620) or rounded off: P24,600

TOTAL – (P25,140) or rounded off: P25,000

D. Indirect Cost

• Labor cost (350.00/day x 30 days) – P10,500
• Electricity – P2,210
• Water – P890.00
• Contingency (10% of direct costs) – P1,600

TOTAL – (P15,200) or rounded off: P 15,000 

Price List

• Van   -  P120.00
• Taxi  -   P60.00
• Suv's - P120.00
• Sedan-  P80 - P100
• Exterior auto detailing - P1,500.00
• Interior auto detailing - P1,000 - P1,500.00

Estimated Sales for a One-Month Operation

• 17 cars @80.00 x 30 days – P40,800
• 3 vans @120.00 x 30 days – P10,800
• 10 cars @45 x 30 days (only for tire black and vacuuming) – 13,500.00
• 8 cars @550 (for detailing) – 4,400

Sub-total – P69,500

LESS:

• Direct cost – P25,000
• Indirect cost – P15,000

Sub-total – P40,000

---

NET INCOME MONTHLY – P 29,500

NET INCOME DAILY – P 983

Remember: This is just an estimated guide that will give you an idea of the equipment, costs, price options, and profit you'll get when you start out a car wash business.

The computation does not include monthly rent space and insurance costs (if any). Please do a more extensive research if you seriously plan to get into this venture.