Automotive & Equipment
Business Funding for Car Washes
Car washes are real estate and equipment businesses wrapped in a retail wrapper. The cost of a new tunnel car wash runs $3 million to $5 million between land, construction, and equipment. Even a self-serve or express exterior wash costs $500,000 or more to build. The upside is that car washes produce strong recurring revenue, especially those that sell unlimited monthly wash memberships. Lenders love the subscription model because it creates predictable cash flow.
Common Uses
What Car Washes Use Funding For
- Build a new express exterior or full-service tunnel car wash from the ground up
- Purchase conveyor systems, blowers, chemical dispensing systems, and water reclaim equipment
- Acquire an existing car wash location and upgrade the equipment
- Convert a self-serve or in-bay automatic to a higher-throughput express tunnel format
Funding Options
Best Funding Types for Car Washes
SBA 504 Loan
The ideal loan for purchasing land and building a new car wash. SBA 504 loans offer fixed rates on the real estate portion with 20 to 25 year terms, which is critical given the high buildout costs of tunnel washes.
Equipment Financing
Finance the tunnel equipment, chemical systems, and water reclaim separately from the real estate. Car wash equipment from manufacturers like Tommy Car Wash Systems and Sonny's retains value and is easy for lenders to collateralize.
SBA 7(a) Loan
Best for acquiring an existing car wash or funding a renovation. SBA 7(a) loans can cover the purchase price, equipment upgrades, and working capital needed to transition to a membership model.
What Lenders Look For
Qualification Notes for Car Washes
Related Industries
Related Automotive & Equipment Funding
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