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Why are there suddenly so many car washes?

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Re: Why are there suddenly so many car washes?

#311

Post by 3weeksearlier »

Spivak wrote: post #209
gunapologist99 wrote: post #201

Earlier quoted context omitted.

> I take pride in the fact I haven't been to a car wash in probably 3 years and have likely gone myself less than 10 times total. You don't come off here as well as you think you do.

I really don't get what this is implying, commuter cars are essentially self-cleaning. You're driving on roads where the worst that's gonna happen is some salt buildup in winter that isn't worth washing off in winter (and isn't rusting in winter) and then it washes itself off first rain of spring. This feels like one of those iceberg tips where I'm really glad I'm not in the kind of social circle where having a spotl…

Depends on the climate. In parts of California, rain can be rare.

Re: Why are there suddenly so many car washes?

#312

Post by ViktorRay »

Terretta wrote: post #308
logifail wrote: post #89

> There are four full-service car washes in town, with a fifth on the way; three are bunched up on a mile-and-a-half stretch of Route 14. Social media complaints about car wash overkill spurred town leaders to take action. Four (or even five) doesn't sound that much? What's the actual problem here? How is a local politican supposed to determine what is the correct density of any particular type of service within her…

> dozens of hotels… feature not bug One hotel (hub) with differentiated service levels could be more efficient, effective, and ecologically minded. Think Vegas casino property without the casino.

This doesn't make sense. You are arguing that a monopoly (1 hotel in an area) would be more efficient than a dozen in an area who compete strongly?

For customers the area that has many hotels that compete with each other will be better than the area that just has one. The area with one hotel would have a single hotel that would have no incentive to be efficient or effective.

Re: Why are there suddenly so many car washes?

#313

Post by 3weeksearlier »

coldtea wrote: post #302
KingMachiavelli wrote: post #181

I really hate sounding like a broken record but this is just another instance of how low property taxes and the absence of land value taxes massively benefits low-value businesses. The real business of car washes is real estate, it's profitable enough to get 3-4x leverage with a low interest loan. TBH I think real estate used to have high information asymmetry between local residents and large investors; low property…

> this is just another instance of how low property taxes and the absence of land value taxes massively benefits low-value businesses Thank god we haven't optimized that fully. This is how small businesses like local cafes, delis, bookstores, and "mom and pop" stores are able to survive in cities. I wouldn't want to live in any capitalist shit-hole where land value taxes force high-value businesses.

I used to live in an expensive/touristy area that became more so over time, and it was annoying how every unique shop that closed get replaced by a fancy clothing store.

Re: Why are there suddenly so many car washes?

#314

Post by nawgz »

Terretta wrote: post #308
logifail wrote: post #89

> There are four full-service car washes in town, with a fifth on the way; three are bunched up on a mile-and-a-half stretch of Route 14. Social media complaints about car wash overkill spurred town leaders to take action. Four (or even five) doesn't sound that much? What's the actual problem here? How is a local politican supposed to determine what is the correct density of any particular type of service within her…

> dozens of hotels… feature not bug One hotel (hub) with differentiated service levels could be more efficient, effective, and ecologically minded. Think Vegas casino property without the casino.

Isn't this just true about everything? Having a bunch of shipping companies makes way less sense than having a single globally-integrated logistics solution that everyone uses that could therefore know about and plan around far larger scales.

What I'm trying to say is I don't understand your point.

Re: Why are there suddenly so many car washes?

#315

Post by sytelus »

KingMachiavelli wrote: post #181

I really hate sounding like a broken record but this is just another instance of how low property taxes and the absence of land value taxes massively benefits low-value businesses. The real business of car washes is real estate, it's profitable enough to get 3-4x leverage with a low interest loan. TBH I think real estate used to have high information asymmetry between local residents and large investors; low property…

This doesn't make sense. There are tons of other business which will have higher day to day return and property appreciation. I don't think anyone was craving for car wash subscription and I don't know of anyone having car wash in their checklist monthly item. Those people exist for sure but not in that kind of demand that a town needs even two of them.

I think this is just another instance where private equity is creating imaginary business model of subscriptions and selling it to its investors. The money managers will get huge management fees and will disappear before the whole thing collapses in coming years. Meanwhile, they will run a lot of good and necessary businesses out of town.

Re: Why are there suddenly so many car washes?

#316

Post by themadturk »

atrus wrote: post #168
logifail wrote: post #89

> There are four full-service car washes in town, with a fifth on the way; three are bunched up on a mile-and-a-half stretch of Route 14. Social media complaints about car wash overkill spurred town leaders to take action. Four (or even five) doesn't sound that much? What's the actual problem here? How is a local politican supposed to determine what is the correct density of any particular type of service within her…

> If the market were too small, the weakest would fail, right? Right? I find it interesting that we have sayings like this, and sayings like "the market can stay irrational longer than you can stay solvent." > why should a politician need to step in to regulate, rather than letting the market decide? Because the market doesn't price in externalities. Sure the market will figure out which car washes live. But what abo…

We have five or six car washes in town (I think...we're pretty spread out, so there might be a few I've never noticed). One is fully automated, no humans touch it. One is low-staff: a couple of guys running wet mops over the exterior before the car goes through. One is pretty full service, with a squad of guys pre-cleaning, minor detailing, hand waxing. The last two (and part of the full-service wash) is four or carport-like stalls with hoses and soap, the driver does all the work.

As the article says, automated or even semi-automated car washes don't provide much employment or sales tax revenue. On sunny days, some of these washes have vehicles sitting in line, waiting their turn...most with their engines idling.

I live in an apartment so managing my own washing is impractical, and is actively discouraged by the landlord. My 15-year-old car goes through the wash three or four times a year, and it's finish is still fine, thanks.

Re: Why are there suddenly so many car washes?

#317

Post by c_o_n_v_e_x »

KingMachiavelli wrote: post #181

I really hate sounding like a broken record but this is just another instance of how low property taxes and the absence of land value taxes massively benefits low-value businesses. The real business of car washes is real estate, it's profitable enough to get 3-4x leverage with a low interest loan. TBH I think real estate used to have high information asymmetry between local residents and large investors; low property…

>...this is just another instance of how low property taxes and the absence of land value taxes massively benefits low-value businesses.

The government also benefits from sales taxes, licenses, permitting fees, etc.

Re: Why are there suddenly so many car washes?

#318

Post by j16sdiz »

nix0n wrote: post #44
AmVess wrote: post #31

Earlier quoted context omitted.

Hard to do since most of these are credit card only now. They are popping up because it is good, mostly passive income if you are in the right area.

"Credit card only" is a sure sign of money laundering: it's a way to game the cash vs credit ratio. (Edit: maybe "sure sign" is a little bit hasty, but I think the other possible reasons for a "credit card only" sign are actually worse morally than money laundering)

"Credit card only" meant everything have paper trail.

Maybe some tax avoidance scheme, not money laundering.

Re: Why are there suddenly so many car washes?

#319

Post by chasd00 »

smeej wrote: post #269
michaelmrose wrote: post #205

Earlier quoted context omitted.

Sounds fantastic sadly it's easy to see why it doesn't exist. Oil changes require following environmental regs, careful disposal, paying for same and it makes a 1000x more sense to integrate them with a business that actually works on cars and can capture additional dollars for other maintenance and repair. You also want a comparatively skilled and trustworthy individual not someone who moved up from vacuuming to oil…

"Quick lube" stations are everywhere too though. $20 and out in 10 minutes. This was more like "quick lube plus car wash," not "oil change, free 97 point inspection, and upsell on six things that aren't even wrong with your car."

Yeah some of the oil change places in my town don’t even require you to get out of the car. You just pull up, read the news for a few minutes and then pay and drive off.

Re: Why are there suddenly so many car washes?

#320

Post by thatguy0900 »

KingMachiavelli wrote: post #181

I really hate sounding like a broken record but this is just another instance of how low property taxes and the absence of land value taxes massively benefits low-value businesses. The real business of car washes is real estate, it's profitable enough to get 3-4x leverage with a low interest loan. TBH I think real estate used to have high information asymmetry between local residents and large investors; low property…

Out of curiosity, do you live in a high snow area? I wash my car pretty regularly once the road salt starts coming out, most car washes here do some manner of undercoat to help with the salt rust.
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