Car Washes

PROJECT DESCRIPTION

New car wash technology has enabled operators to wash more cars per hour with faster service times, better and safer cleaning, more complete drying, and an overall better customer experience. Up to 100 cars per hour can be processed providing a professional wash and dry in three minutes. From an environmental perspective, this new car wash technology consumes 1/3 less water than washing a car at home. Home car washes often result in engine and brake residue, antifreeze, grease, oil, and other harmful pollutants draining into storm sewers that flow directly into local streams, rivers, and oceans. 100% of the water used in modern car washes is generally recycled through filtering systems with any remaining pollutants to be disposed of at government-regulated sites.

According to data from market research firm, IBIS World, the Canadian car wash market is estimated at $465 million, growing at a rate of 2% to 3% per annum. Research has shown that there is little seasonality in the car wash market, with average daily car volumes not changing significantly from month to month. Demand for car washes has also increased as consumers are more educated with regards to how home car washing is harmful to the environment.  The International Carwash Association reports that 28.4% of consumers washed their cars at home in 2015 – down from 47.6% in 1996.

New technology car washes are a disruptive innovation that deliver recurring cash flows, high operating margins through increased efficiencies and reduced staffing requirements, providing attractive risk-adjusted investment returns.