Let’s start off with the most important question: is owning a car wash profitable? With the right location, it certainly can be.
Car washes will always be in demand, with approximately 2.6 million registered cars in London. Overall, the car wash industry generates billions of pounds in revenue, and while a decline of 0.7% in growth is expected for 2023, there are so many opportunities to ensure your business generates sustainable profits from day one. For example, existing automatic car wash facilities have high profit margins, low capital requirements, and require minimal effort to run.
So, let’s get into the top reasons why you should invest in a car wash in London.
Opportunity to optimise and scale
Buying a car wash in London means you’ll have the opportunity to optimise and scale your business by automating your services and developing new efficiencies that utilise technology. Most industries are going through digital transformation, and car washes are no exception.
Start small; automate unnecessary administrative tasks, and then think about implementing more advanced technology like RFID (Radio Frequency Identification) and a membership model.
A car wash is also a business that can grow considerably through expansion. Once you’ve perfected your operational model in one location, it is possible to expand into larger suburban areas.
Resale potential
Car washes have the potential to generate healthy, recurring revenue, so their resale potential is attractive to investors. Thanks to technological advancements, your car wash doesn’t have to work on a labour-intensive model. By decreasing the need for on-site staff and increasing the consistency of your revenue through automation, selling your car wash can be a relatively straightforward and financially rewarding process. If managed correctly, it’s a great business to flip if you have a retirement strategy you want to pursue.
A huge marketing budget isn’t necessary
If you’re buying an existing car wash, it's likely that you’ll already have existing customers who know your brand, so your marketing budget won’t be as costly compared to other business ventures.
Of course, you’ll still need to focus on acquiring new customers and retaining your existing ones, but it is possible to do this on a small budget. We don’t recommend relying solely on word of mouth, so think about developing loyalty programmes, using social media, working with your community and sending out digital promotions through email marketing.
How BusinessesForSale.com can support your new business venture
Buying an existing car wash can be a practical business investment, but how much does it cost to buy a car wash? A quick search for car washes for sale on our site shows that asking prices range from £14,000 - £1 million throughout the UK. These listings also include franchises, which might be a safer and easier route into business ownership.
It’s important to prepare yourself for the buying process, so knowing how to buy a car wash will help you navigate due diligence, valuations and more.
We also have a range of vehicle-related businesses for sale in Greater London, which is another profitable sector you can consider.
We hope this article has been helpful, and we wish you every success on your new entrepreneurial journey!
