Car Wash Feasibility Study in Nevada

A Nevada market led by Clark County

Nevada car wash lending is concentrated, and Clark County alone accounts for 18 of the 36 loans approved from FY2017 to FY2026. Those loans total $51.5 million, and the median is $860,000, or 0.93x the nationwide median. The location quotient is also 0.93x, so the class sits just under the national weight. Nevada ranks 29 of 53 among states and car washes 13 of 39 within it. The central range runs from $238,125 to $2.3 million, reflecting both small neighbourhood sites and large tunnel projects.

Programs and lenders

The product split is 24 loans under SBA 7(a) and 12 under SBA 504, with franchising at 2.8% of loans. Celtic Bank Corporation holds 5 loans worth $12.9 million, a very large average, and U.S. Bank, National Association holds 5 worth only $99,400, so the two lenders play different roles. Washoe County has 8 loans, Carson City, Elko and Lyon have 3 each, and Humboldt has 1. The mix of urban Las Vegas and Reno with smaller desert towns shows how the market stretches along highway corridors.

Cancellation and the loss gap

Cancellation is 6.7% as a floor and 6.7% with undisbursed loans counted, a low and stable figure. Nevada has no printable loss rate: the FY2017 to FY2021 funded window is under 30 loans, and Nevada's blank must not be read as a zero. Water cost and supply are the quiet risk in a desert state, and so is a drop in tourist driving. Lenders should ask how a site's water use is permitted and priced.

What the Nevada study should do

Mobile washes and truck washes are filed alongside car washes in one industry class, so the study should define the format. It should test water rates and reclaim systems, traffic counts at the site, and the competition from tunnels with free vacuums. Heat and dust affect equipment wear and maintenance. Coverage of debt service should be tested for a weak summer or a downturn in visitor volume. The appraisal needs to value land, building and equipment separately. The data above shows how Nevada loans have been sized and spread.