Why are there suddenly so many car washes?

Real estate, finance, and tax angles

• Many see modern car washes (and self‑storage) as land‑banking: low-complexity cash flow that covers debt service and taxes while owners wait for land to appreciate, then sell or redevelop.
• Turnkey equipment and standardized buildings make them relatively easy to replicate and manage; some note the build is more complex than it looks due to underground tanks and recycling systems.
• Commenters link the boom to:
  • Private equity “roll‑up” strategies in boring, cash‑return businesses.
  • MBA “entrepreneurship through acquisition” and search funds.
  • YouTube/“passive income” culture pushing laundromats, vending, car washes.
• US tax law (2017 TCJA) allows large bonus depreciation on car wash equipment; some say this is a key accelerator.

Subscriptions and demand

• Industry shift from one‑off washes to monthly “unlimited” memberships: recurring revenue, smoother cash flow, better loan prospects.
• Subscriptions induce higher use: people who washed a few times a year now go weekly or more, especially in salted-road climates and among older owners or rideshare drivers.
• Dealerships and fleets are major bulk customers, sometimes washing cars overnight.

Money laundering, labor, and illicit use

• Persistent belief that car washes (like mattress stores, nail salons, UK hand-washes) are good for laundering or drug fronts; pop culture (Breaking Bad) reinforced the meme.
• Counterpoints:
  • Many new sites are card‑only with full electronic trails.
  • Digital schemes (gift cards, Steam games) may be more attractive for laundering.
• In the UK, manual hand-wash sites are associated with undocumented labor and potential modern slavery.

Environment, regulation, and home washing bans

• Some cities/regions ban or discourage driveway washing to protect storm drains, rivers, and groundwater from soap, phosphates, oil, and salt.
• Distinction emphasized between:
  • Sewer systems (treated).
  • Stormwater systems (often discharge directly to waterways or overflow in storms).
• Car washes typically must have oil–water separators and water recycling; per‑car water use can be 10× lower than home hosing.
• Others suspect regulatory capture or “rackets” when cities promote commercial washes while banning home washing.

Urban form, land use, and politics

• Critiques:
  • Automated washes use a lot of prime land, create little employment, add traffic/noise, and can leave ugly shells if they fail.
  • Seen as another symptom of car‑centric planning and sprawl.
• Defenses:
  • If they’re profitable, that signals real demand; failures will self‑correct via the market.
  • Some argue local politicians overreach by capping counts or blocking new sites.
• Big subthread on land value tax vs. current property tax:
  • Pro‑LVT: would penalize underused lots (parking, car washes) in high‑value areas and encourage denser, more productive or housing uses.
  • Critics worry about complexity, fairness, and government over‑optimization of land use.