Feasibility Study Of Car Wash Business In The Philippines

Dec 18, 2020

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The feasibility study of car wash business in the Philippines and the things you need to successfully put up your own empire.

Car Wash Business In The Philippines: First Thoughts

Owning and successfully running a business is the dream of many people with the purpose to expand the income and live up to the passions. 

If you are urged to set up your own business in the Philippines, you can take the car wash business into consideration. With the number of personal vehicles increasing in the past few years, the market for auto services such as car wash has also expanded.

Even though there are tons of car wash centers scattered throughout the country, car wash services have not yet met the demand and fulfilled the standard criteria, especially in the urban areas.

feasibility study of car wash business in the philippines

The real question raising right now is what you should do to start a car wash business with ease and pleasure. 

In the following article, Philtoyota.com will show you the basic guidelines on the feasibility study of car wash business in the Philippines right away.

The Process and Requirements To Open A Car Wash Business In The Philippines

First and foremost, you should focus on preparing the necessary papers to legalize the operation of your business. This task is quite time-consuming and laborious, especially if you, as a foreigner, are not familiar with the types of required documents.

Below is a list of some necessary documents for your car wash service in the Philippines references:

Department of Commerce and Industry (DTI) or Securities and Exchange Commission (SEC)

A legal name is needed to affirm individual ownership of the business as well as to ensure trust in the business’s legitimacy with its customers.

If the business is owned by an individual, its name needs to be registered with DTI. In the case of multiple owners, the name must be registered with the SEC. 

Car Business Entity Registration Philippines

Car Business Entity Registration in the Philippines.

It should be noted that the uniqueness of the business name needs to be ensured. Therefore, make sure that no other has used your business’s selected name before.

Barangay Clearance

You need to go to the barangay hall where the car wash business is located to receive a barangay permit.

Remember to bring a certificate of business registration at the DTI or SEC, an electrical and fire safety certificate, a valid ID, and a tenancy agreement (if you rent a place).

Mayor or Business License

For this type of license, the required documents include DTI or SEC registration, community tax certificate, barangay clearance, valid IDs, and a map of the location of your business.

Tax registration number (TIN)

To issue receipts and pay taxes, your establishment needs a TIN tax registration number. Required documents to obtain an official TIN include DTI or SEC registration, Barangay Clearance, Mayor or Business License, a valid ID, and a business location map.

Others

You will also need to address employee-related documents such as DOLE, PhilHealth, SSS, and HDMF to successfully register for a car wash business in the Philippines.

>>> Related: 8 Ways To Earn Extra With Your Car in the Philippines

Needed Car Wash Equipments For The Business

Along with the ample space and an overflowed source of water, you also need several basic car wash equipment and tools to help the car wash business run efficiently and smoothly. 

car wash business equipment

You need to spend at least PHP 30,000 on equipment alone at the time of starting a business

Here is a list of the most basic equipment and tools that a car wash service should have:

Pressure Washer

This is a specialized cleaning machine that drains water at very high pressure to remove dirt, mold, or even gum stuck on the vehicle easily.

There are different types of washer nozzles available for different purposes, and they can be used interchangeably. Thus, you should purchase several types for use in varying situations.

Equipment of a car wash business.

A high-pressure washer is one of the most needed equipment of a car wash business.

Pressure washers can be classified based on gas, electrical, and battery power sources. In our opinion, an electric or battery-operated pressure washer would be more suitable for new businesses because of its ease of operation. 

Plus, if you are interested, a multiple-tasked pressure washer unit with wheels is effortless to bring along, however, it can take up more space in your garage.

Pressure Tank

Keeping running water is an important piece of equipment for the car wash business in the Philippines. However, with a limited water supply that can easily lead to water shortages, you need to use a pressure tank with a capacity of at least 340 liters. 

With the aid of pressure, the accumulator will help push water to the pipes. Not only that, but the tank itself is also capable of storing a large amount of water.

Water Drums

Although the accumulator is capable of storing water, it is difficult to ensure a stable water supply. Therefore, you should add at least three large water drums, keeping the water supply more stable.

Vacuum Cleaner with Blower

Apart from washing the exterior, cleaning the car’s cabin is also a popular service that car wash centers offer. 

Therefore, a 750W vacuum cleaner with a 6-meter long cord and the blower will be perfect sidekicks supporting suck up dirt deep in the car. A good vacuum cleaner will come at around PHP 4,000.

Vacuum cleaner with blower car wash

A good multiple-tasked vacuum cleaner with a blower can easily help you to clean your car both in and out.

Others

Apart from the equipment listed above, you may need additional items such as water tanks, ladders, hoses, rags, and car sponges, which do not cost too much.

>>> Read more: 10 Tips To Self-Wash Your Car Properly

The Estimated Monthly Expenses For A Car Wash Business In The Philippines

In any business, one of the most important things that need to be noticed is balancing the monthly earnings and the detailed expenses to end up positively with a relative profit. 

For a car wash business in the Philippines, will there be any expenditures to spend and how much to expect?

The following list will give you a basic overview of the estimated amount and expenses of your car wash center needed in a month:

  • Renting fee: In case you do not own a place that served as a location for your business, you will need to consider renting a suitable location.
  • Consumables (liquids needed for professional car wash such as polish, car shampoo, tire black, wax): about PHP 25,000
  • City Services (including water and electricity costs): PHP 4,000
  • Salary: Depending on the profit but need to ensure the minimum wage level set by DOLE.

It is a bit difficult to accurately predict the total monthly costs since many factors affect the business’s total expenditure, such as the size of the business, number of employees, or suppliers. 

However, the above-mentions are some of the most basics operating costs for a car wash business in the Philippines that you should aware of initially,

Car wash business expenses

Keep in mind the other costs and expenses when running the car wash business.

>>> Further references:

The Income Of Car Wash Business In The Philippines

For any startup with mid-range capital and a decent business size and reputation, it is quite difficult to achieve great success from the very first steps. 

However, given the nationwide popularity of owning private vehicles, a car wash business that runs in a good location with dedicated services can gradually get a solid business stand anywhere in the Philippines. 

Thank you for staying with us on today's feasibility study of the car wash business in the Philippines article. 

Good luck to you on all business plans in the future and see you next time with more Toyota Stories for tons of car news and notices you don't want to miss!

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