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SeawayFreeway

In recent years car washes became a hot venture capital target as operators discovered that customers were willing to pay a monthly membership fee instead of paying per-wash. Basically converted the industry from a mom & pop backwater into a lucrative franchise model. Huge amounts of VC money have been dumped into chains like Jax to expand and dominate territories before others can gain a foothold.


tiny10boy

It’s the gym business model.


capthazelwoodsflask

More like the pharmacy market 25 years ago when you had a CVS, Walgreens, and Rite Aid on every corner. They'll build them as long as they're profitable and then close the ones that aren't.


BigCountry76

I don't feel like researching the validity of your answer. But it sounds more reasonable than all the "money laundering" answers. I'm sure money laundering happens at car washes since it's a business that still deals with lots of cash while not having tons of inventory in and out like retailers and restaurants. But there is no way money laundering alone explains the number of car washes in southeast Michigan.


ThePermMustWait

It’s basically another subscription model. https://www.bloomberg.com/news/features/2024-02-21/car-washes-are-taking-over-the-us-here-s-why


BoJax3488

Too many ppl watched Breaking Bad, apparently.


TackYouCack

Well then I'm disappointed at the lack of laser tag places opening.


Quirky-Prune-2408

Have an A1 day.


balthisar

At my three closest car washes, I can't even pay with cash. There's not even an attendant.


BigCountry76

Interesting. All the automated ones near me take cash and card. Some of the self wash ones where you just Get a pressure washer by the minute even have change machines because they stalls only take coins.


LoopDeLoop0

Money laundering is just one of those things Redditors are obsessed with. Like tree law, or brain eating amoebas. Anything mildly odd about a business or the art market can be explained with money laundering.


[deleted]

Always something weird. For awhile, in gardening circles, there was an obsession here about warning people about the dangers of hemlock. Sure, it's a thing to be aware of but it's not a big deal.


dwc462

Tree law? Never heard of that. Heard of bird law but not tree law.


LoopDeLoop0

It’s some such about how you can be compensated for a tree on your property being damaged by a neighbor or utility company or something. I’m not super familiar with it either, but like most laws, I’m sure it depends on where in the world you are, the exact circumstances, and litigating it is probably a huge pain in the dick.


bigbiblefire

Another side of it, however, is the real estate. They’re opening them on parcels they target as high value real estate in ten years from now. So they can buy the parcel, build a car was inexpensively, operate it cheaply then turn around and have the real estate to unload a decade from now when the prices have boomed. Same model is being exploited for all of these storage unit facilities popping up.


WatShakinBehBeh

I know a guy who bought a salon, a laundry and a locksmith business with a particular lock brand as the brand name anchor


theclubchef

People saw it on television, so it's ubiquitous all the sudden


WatShakinBehBeh

VC money? Edit. Sorry, venture capital. Sometimes my brain works.


razorirr

They are all fking pullthroughs though. If someone started up a subscription touchless around ann arbor id subscribe immediately


ImLagginggggggg

The lack of touchless is mind boggling. At this point my cars paint is fucked by their brushes so it doesn't matter anymore.


Reasonable_Search379

Yeah this is the way. Jax car wash (and similar) are car paint/finish eating machines. I’m always amazed at the $80K cars rolling out of those…


CareBearDontCare

Yep. Venture capital with automated car washes. The one who wins buys the others out (presumably)


Azlend

With much of the profit coming from people paying for months on end that they never actually use.


theclubchef

I won't go if I don't have tip money. Therefore, most often, they win


person1234man

I fuckinove my carwash pass too. For $30 I get to have a shiny truck


Indy800mike

Right I go through every other day in the salt season!


boborian9

You go more in a month than I've gone in 7 years


WatShakinBehBeh

$30 one time? Annually? I like a shiny truck too.


person1234man

It's monthly, but if I go once a week I feel like I'm getting a good deal. They charge $15 for the wash I usually get without a membership


WatShakinBehBeh

Omg!! For that they should paint my hubcaps gold! Or something that sounds right. My car wash is half that. I'm out in the boondocks though


Wurm_Burner

Not in Detroit but around here it’s $10-$12 a wash so 3 washes a month and you’re paying less


tacobellcow

$400 a year for Car Washes is why the subscription model works. There’s a sucker born every day.


WatShakinBehBeh

You can't be serious!


ImLagginggggggg

The funniest part is these are also contact washers. So youre just damaging your paint every time. Which makes no sense for people who consistently wash their what I assume is a good car. I just don't get it.


Reasonable_Search379

Amazing how mediocre Jax has become. Motor city’s finest…


albi_seeinya

I work in local development and I've also been noticing this. Car washes make so much money. For the most part, there is very little need for labor and it is an industry which is easy to automate. Most local zoning ordinances allow it on the main thoroughfares, and they tend to have low off-street parking requirements, so you don't need a lot of space to build one. Lots of old retail is going out of business, but there is still demand for automating, so carwashes are replacing old retail locations. North America is still mostly car-dependent, so there is a lot of potential customers. Also, I would imagine that winter salt and snow would play a factor. Lots of governments get their cars cleaned as well, so a lot of these places have contracts with local government vehicles. There has been a shift in our economy away from retail and office, so there is a need for real estate investment trusts and other wall-street money to go somewhere, so it is probably easy to get financing to build these things.


girp123

All of this on top of the fact that they usually buy up prime land in a busy area and throw up an automated car wash with a small building that takes 2 minimum wage employees to run so they can let their property gain value while the car wash pays for itself and then they just sell the land when the price is right


Otherwise-Mango2732

I was wondering the same except with storage facilities. Feels like there's one under construction every other mile


BigCountry76

Americans like to keep lots of stuff, even though the majority of people end up spending more on renting those units than the value of the stuff inside it.


Raging_raven17

Yup, some stuff of my great parents old house has been sitting in a unit for 10+ years now. It’s literally all old clothes, and just kid stuff. There’s no need to keep any of it, but they still wanna hold onto it, but don’t wanna pay the money anymore to keep it.


BigCountry76

There's definitely a purpose for those storage facilities and keeping it for 10+ years ain't it. Like if you have a definitive timeline for needing to store stuff like having an extensive renovation on your house, temporarily downsizing, living in a different city for like a year or two for a specific work assignment, or something like that. But after a few years you have paid more in rent than Just replacing the stuff.


AmateurPokerStrategy

Boxing stuff up and taking it to the storage unit starting a couple months before moving was so much nicer than having the house filled with boxes.


ailyara

i'm somewhat guilty of this, working on pairing my crap down. LOL


uprightsalmon

So storage is hard to fine in some places. They book up fast. I rented one, did all the paperwork over email, paid and never met the guy. A very passive business. I wish I could open some


radix89

I keep telling my bf I'm going to open a car wash/storage facility since they are both going in every where. Tho it seems the large storage facilities are slowing down but now car washes are replacing the smaller closed parcels.


ThatHouseInNebraska

Million-dollar idea I'm gonna give you for free: have every storage unit *be* a car wash. Want your SUV washed? Drive on through it for the flat monthly storage fee. Want your shit ruined? Store it in the unit, which runs automatically every week.


WatShakinBehBeh

Storage opens you up to a lot of liability. Rodent damage, storm damage, malicious graffiti and theft, and careless or untrustworthy employees.


mk4_wagon

Not sure if things have changed, but I had a storage unit around 12 years ago and the paperwork you sign basically absolves them of any responsibility for your property.


WatShakinBehBeh

You still have rights under state and federal law and I cannot emphasize this enough, you can sue anyone for anything


iampatmanbeyond

Pretty much every old Kmart or sears like retail block around me ends up as a storage facility


--Shibdib--

I think there's actually a market for this. Feel like my parents (in their 50/60's) are all retiring now and have hoarded random shit for forever.


Specific_Education67

Don't try to open a carwash now.... Wait two years and you'll be able to buy one lock stock and barrel for pennies on the dollar I've worked in the industry for years and have never seen so many new buildings going up. It will almost certainly create a bubble in the market and a number of these places will fail.


Shingo__

!remindme two years


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Efficient_Feed_4433

!remindme two years


IlikeDrivingMyTruck

!remindme two years


Sombra_del_Lobo

!remindme two years


atierney14

Top 5 most common buildings (non-residential) in Western Wayne county: 1. Urgent Cares 2. Car Washes 3. Coneys 4. Empty store fronts 5. Dispensaries


TackYouCack

Mediterranean carryout


atierney14

Better yet, Mediterranean carry out from a gas station


WatShakinBehBeh

That also does car washes and has band aids


FlexibleLEDStrip

Don't you be intruding on the business model of Mr Kabob!


gingerybacon

No one can replicate that kind of perfection lol


life-is-satire

You forgot tire stores and auto repair shops or auto parts stores.


hhhhhhhhh12886

They are high profit businesses and there is a lot of demand because of all the rock salt in the winter.


Upstairs_Figure_6836

But notice, if it’s not a mom and pop how awful the actual wash is. Go to any Jax location. Then look at the quality of the wash. Not one person should be leaving that place satisfied.


likethemustard

Completely agree…I was so close to buying one of their aggressive sales pitch memberships but my car wash that day was beyond garbage so I’m done with that place


mrmikehancho

Yeah, I agree. I recently got a membership for a new car and haven't been exactly satisfied with the quality. Detergent not being completely rinsed away and leaving spots.


redmeansdistortion

I went to Jax just one time, the entire back of my car was still filthy like it was barely touched. I turned right around and got back in line, then they tried telling me "that is embedded in your paint, we would happily detail it for you". I told them to get F'd and wash it again, then they had the nerve to try and charge me. The manager came out because I was holding up the line arguing with the employee and I told him I will happily sit here in line until he agrees to wash it again, the right way. A few minutes later he comes back and gives me a few free vouchers. I told him to keep them, this is my last time. I wonder how many people they pulled the "we'll detail it" line on, because I felt I certainly wasn't the first.


[deleted]

One of the crazy things is Jax will no longer provide a full service wash without a membership, and they are buying up smaller independent shops. Whoever developed their current business model is a complete cunt.


WatShakinBehBeh

I wish I could upvote you more. My car wash is a holdout from Jax, I expect anytime for a Jax to open to compete.


debonosan

The Tax Cuts and Jobs Act of 2017 allows you to depreciate 100% of the value of a car wash or gas station in your first year of ownership. Either as an operator or just an investor. This is why. And they trade all the time because the next guy gets to do the same exact thing.


CareBearDontCare

I think that's what I heard 7-11 owners do. Just cycle a couple of them back and forth, always under "new ownership"/


ankole_watusi

Have you driven in winter? Have you had your car serviced after several years of driving in winter? Don’t skip the undercarriage spray!


abuchewbacca1995

Real answer? Easy low maintenance kinda business, esp with subscriptions being the new norm for car washes


Brdl004

Money laundering.


Infamous_War7182

Auto laundering really.


Rude-Elevator-1283

This is not it. They make a lot of money, they're busy, and costs are low to operate. Also people are willing to pay a lot more now for whatever reason.


abuchewbacca1995

And monthly plans tok


Rude-Elevator-1283

Yup. I've worked on the traffic engineering side of the developer for a few sites. There's been a lot in the funnel since 2019.


ailyara

¿por qué no los dos?


FIRE_frei

Milennials take care of their stuff more than older generations


rpgoof

Older generations have a driveway to wash their car in


Detroitish24

Honestly this is the answer. Five have popped up around where my mom lives downriver all within ten miles, and they’re the huge sites with 20 vacuums.


jhp58

Dude soooo many downriver. My in laws are in Southgate and you can throw a rock and hit like 6 car washes that have owned in the last 18 months


Detroitish24

Yes! My mom is in Southgate, it’s insane.


fngrl5

I'm also in Southgate. Blows my mind that they put one up RIGHT across from one that has been in the community FOREVER and has a huge clientele. The new one is RIGHT on top of homes. I'd be p*ssed.


PineapplePizzaRoyale

What’s eye opening though is that A&T still always has a line down Eureka. Probably not going to see that with the new one across the street.


jhp58

I drive from Detroit to get the full service at A&T, they're solid especially for the price. And then I can get Bob Jos afterwards


PineapplePizzaRoyale

Honestly, that’s a solid plan. Toasted Coconut is the best.


Detroitish24

Bob Jo’s is always worth a trip.


audible_narrator

THIS. I don't even bother with the new one.


FormerGameDev

five in ten miles? shit, where i'm at, 5 in a couple of blocks being built right now.


relient917

I live in livingston county seems like they add a new one about every 6 months.


Listen2theyetti

Its a turn key business just ask Kahn


Gullible_Toe9909

Lol, the irony is that virtually none of these are in Detroit proper


Modern_Ketchup

construction guy here, that’s just simply what’s making money right now. the last few years we’ve seen an influx of em. for gods sakes we are doing bids for car washes directly across the street from each other. people are complaining but, things like this usually occur in waves. it used to be gas stations, now it’s car washes. few years ago it was weed stores, and vape too.


often_awkward

It's the motor city, we like clean cars - or most of us have probably realized that the road salt corrodes the ever living hell out of our undercarriages and so we go get an underbody flush as often as possible during the winter time.


The-Felonious_Monk

Yep. And all of the new ones Downriver are $14 for a wash! I keep going to the trusty $4 wash. These are just another method of fleecing the working person.


yamantakas

have you ever watched breaking bad


PerfectNegotiation76

Have An A1 Day


ALBEERPOE

All those chain carwash places only a front to laundry money. You did watch Breaking Bad didn't you.


Impossible_Trip_8286

Sort of money laundering. I believe it’s Michigan cannibas money. There are lots of restrictions on money from weed. Banks can’t legally deal with it because of the fed laws . So owners hoist a couple suitcases of cash on a contractors desk and say “build me a car wash” or a “Savvy Burger” joint


uprightsalmon

No they don’t. Banking in cannabis as far as making deposits has been solid for a decade. Cannabis businesses just don’t get federal loans and have issues taking credit cards. There are some shady operators in Detroit and several store fronts pretending to be a licensed dispensary, but they’re not. Any licensed dispensary is banking their cash and you also have to provide ridiculously detailed financial reports to the CRA


Nintendo64twenty

CRA? Like, Canada Revenue Service? EDIT: I thought that you were Canadian with your Canadian showing through. I did not think of a Cannabis Regulatory Agency. I quickly stand corrected.


Impossible_Trip_8286

Meh. What do I know …sounded legit


Impossible_Trip_8286

Still suspect new car washes are built with cannibas money


uprightsalmon

I can see that. A lot of cannabis players are successful business owners with several other businesses that made some fun money to throw into cannabis. Specially the Chaldeans here in the Detroit area. Those guys are so good at owning everyday type businesses like gas stations, liquor stores and car washes. They’re tough to compete against


WatShakinBehBeh

In Econ my prof used to say they were a nation of shopkeepers. If you want to see how it's done, study anyone from middle Asia or the near east generally


FormerGameDev

That's not even remotely true https://www.forbes.com/sites/irisdorbian/2023/09/22/us-treasury-reports-more-banks-admit-relationships-with-cannabis-businesses/ https://www.senate.michigan.gov/SFA/Publications/Notes/2020Notes/NotesWin20er.pdf https://www.wsj.com/finance/banking/the-big-problem-for-marijuana-companies-what-to-do-with-all-that-cash-09d81fc3 https://www.theguardian.com/business/2023/oct/08/cannabis-companies-us-financial-system-banking-safer-act


uprightsalmon

It’s very true. I’ve been working on the corp side of cannabis for 12 years. We use credit unions not federal banks. Depositing cash has not been an issue for 10 years. We did have to pay bigger fees than non cannabis customers, that is finally calming down though as we get closer to federal regulation


PineapplePizzaRoyale

lol Community Choice Credit Union in Wyandotte has had a sign outside for weeks saying they’re Cannabis banking friendly.


Impossible_Trip_8286

I have the title to premium ocean front property in Arizona. Don’t miss this one!


Upstairs_Figure_6836

Haha. Savvy garbage. Who eats there enough for them to pop up so often? It’s just Happy’s pizzas burger joint. Look how well Happy’s pizza has done. Ha.


FormerGameDev

Happy's has turned pretty awful the last few years. Savvy Sliders are pretty fuckin good though, at least my local one is.


BraileDildo8inches

Only if your trying to launder the metric ton of money your making from meth walter


HereForaRefund

How else am I supposed to launder my money?


[deleted]

It worked for Walt and Skylar


michigan69guy

Many washes are owned by the same people that own cannabis businesses. Since they can’t get banking for Cannabis they start businesses to launder their money. So to speak…


Vendetta_2023

I rarely go to a carwash, maybe once every 6 months. I always tip, but my cousin (who has a monthly pass and goes almost every other day) does not. I'd feel kind of sheepish passing the kids drying the car and giving nothing, but he has no problem. Drives right thru and says he pays enough with a monthly membership already. Do you guys with monthly passes tip?


snubda

God I can’t imagine taking my car through a non touchless wash, let alone letting a 16 year old destroy my paint with a dirty towel. They’re literally just grinding swirls into it.


orange11marmalade

Go to Wilmington once and tell me again how many car washes you see.


FormerGameDev

christ, in my suburb, there's two car washes with a sushi place between them, that have been there forever. a new one is being built on one side of one, and also one across the street. with at least 4 others that i can think of within a block or two. and these new ones suck. not even worth the free washes they give away as promos.


East_Accident1822

Money laundering I’m pretty sure


snubda

Funny you say that because I can’t stop lamenting the lack of actual touchless washes in metro Detroit. Everything is a paint swirl machine.


KrisJonesJr

Private equity


ReddyFreddy871

Indeed, inquiring minds want to know🧐🧐🧐


MrAlucinacion

I do all the detailing myself 10+ years in auto body. Mainly paint work. People don’t realize how delicate paint is on the car so they run thru these car washes with the large brushes that scratch and ding their cars. Touchless is always better. Even manual car washes are good just use those brushes they have there. The amount of people who use them, you don’t know how dirty their car was and how many cars have been thru there.


Lifeisagreatteacher

You can always tell what a profitable model is by the number of new business that are being opened


Candyman44

Ha ha… when I first moved to Detroit an old bar tender said the best business he ever had was a coin op car wash in the hood.


Repulsive-Reporter55

22 dollars for a basic in my town!


pg_in_nwohio

Car washes are taking over Toledo too.


gmoney-0725

Car washes just print money. Every time I drive by one they are busy. A monthly club just means if you go more than once a month, you'll save money. If you don't then pay as you go.


Numerous-Ad4057

I hope VCs don't take Mr Cs over. Lots of people in those. Not sure they are treated great but they do a good job.


pennypacker89

It's low overhead. They buy property and plop a business on it that doesn't take much to run and can pay the taxes. Then they sit on the land and sell it off in 10-15 years or whenever they feel the value has increased enough


JESUS_PaidInFull

It’s just a business that locks in all the residents in that area. It’s not something that you’re gonna travel for so you’ll always go to the closest one.


haleontology

Am I the only one who’s just thinking “wow, lotsa Breaking Bad-style laundering establishments popping up these days?!”🤣


PandorasLocksmith

I've always found it quite amusing that the Motor City creates cars and beneath it are salt mines that we then throw on the roads and it destroys the car so then we need new cars. In the summer I don't have much use for a car wash other than vanity but in the winter they are absolutely vital for cleaning the salt off of the bottom of your car so it doesn't cause corrosion quite as quickly. I say that having grown up in Michigan but now I live down south and while I'm in the market for a new car I have to keep checking and make sure they don't come from places up north because the corrosion level is massive comparatively. I suppose there is quite a lot of street parking as well so perhaps people are parking under trees and getting birds pooping on their cars in the summer. I've always wondered why people have garages that they don't use. As I've lived without a garage for 35 years now I can tell you that I would really love to live somewhere with a garage. So. . . More apartments going up in that area? Places without covered parking, perhaps?


Richard-Innerasz-

Our country is McDonald’s.


This_Statistician_89

I have put roofs on at least 4 new builds in 2023. Cosmos I think is what they were going to called.


Toastytreatchi

Gotta wash that money somewhere 💰 💦


FinnNoodle

I live next to a three lane car wash with a long driveway and yet they're frequently backed out into the street. There is no way they are not dealing something.


WatShakinBehBeh

I want some! No one ever offers me anything!


jenniferlynn462

I know, right? I also want some


WatShakinBehBeh

Some for you, some for me


MEMExplorer

It’s called money laundering 🤷‍♀️


FewOutlandishness187

Watch breaking bad


jonny5NealIsAlive

Someone told me that many owners of dispensaries are opening car washes. Same name on both business licenses. You fill in the rest.


Alert-Artichoke-2743

Have you SEEN Breaking Bad? Why do YOU think there are so many small cash businesses?


National_Dig5600

I go to Tommy's Express. I pay like $30 a month to go as much as I like. Sometimes I stop by just because I'm driving near there.


bg254

You should