Car Wash Feasibility Study in the Austin-Round Rock-San Marcos, TX Metro Area

Austin-area washes: sizable tickets in a lighter-than-national class

Around Austin-Round Rock-San Marcos, TX the median car wash loan is $1.5 million, 1.62x the nationwide median, and that figure separates the area from a typical one. Weight is another matter: the 0.86x location quotient says washes count for a little less in Austin lending than in the nation's, the class sits at 18 of 39 locally, and the area is 27 of 458 nationally. The 26 approvals of FY2017 to FY2026 total $41.1 million.

Programs, counties and one busy year

A broad band from $282,250 to $2.5 million holds the middle half of loans. The program tally is 19 for 7(a) and 7 for 504. Travis County has 11 of the loans and Williamson County has 10, so two counties carry most of the book. FY2024 prints with 7 loans and $5.4 million. Other years are not shown, since a small count is not shown. No lender is named, and franchise share is hidden.

Coding and blanks

Tunnels, self-serve bays, mobile operators and truck washes file under one code, so they are mixed in these totals. Austin lacks cancellation or charge-off floors, since 26 loans cannot support a rate, so read the blank as unknown.

Reading the width of the band

The lower edge of the middle half, $282,250, would fit an equipment or conversion loan, while the upper edge, $2.5 million, fits ground-up construction. Anyone applying should place the project on that range and say why. For a lender, such width means the study has to name its project type before any ratio can be judged.

What an Austin-area wash study should test

Traffic at the site is the base: counts, turning movements and the other washes within a short drive. The study should convert them into cars per day on a ramp, then into revenue from single washes and memberships, with a case for lower volume. Land, building and equipment are priced as three budgets. Water supply, sewer capacity and discharge rules vary by jurisdiction, so approvals and impact fees need schedule lines. The lender's question is coverage when volume lags plan, and an appraiser must keep property value apart from the earnings of a specialized building.