Steady in the Storm: Why Car Wash Investments Shine Amid Economic Uncertainty

The stock market has experienced significant swings in the last few weeks, leaving many investors feeling uneasy and uncertain about the future. However, amidst this market turmoil, there is a consistent source of stability and profitability that frequently gets overlooked: investing in car wash. 

Given the global uncertainty in surrounding financial markets and headlines such as "US Recession Worries Surge Again," Henley believes that the car wash industry is by far the best risk-adjusted space within the operating real estate sector.

Here’s why: 

Downturn Resistant Demand: Historical data shows that even during recessionary conditions people prioritize keeping their cars clean. During the Global Financial Crisis, the Car Wash industry experienced only a 2% decline. Similarly, when Russia invaded Ukraine, car washes outperformed all other automotive products, including fuel. The current trend indicates that during periods of economic uncertainty, people are more likely to drive less rather than reduce the frequency of washing their cars.

Recurring Revenue: Sustainable subscription-based revenue model drives profitability (45%+ EBITDA margin) and growth. With a prime location and best-in-class operations, car washes generate consistent and reliable revenue. Even performing -50%, you still break even.

Scalable Growth Potential: The car wash industry offers substantial growth opportunities, with the potential to significantly boost revenue by adding new locations and leveraging advancements in technology that enable serving a higher volume of customers more efficiently. This scalability has attracted private equity firms that recognize the potential for consolidating fragmented markets, optimizing operations, and achieving impressive returns.

Tax Benefits: Accelerated depreciation benefit offsets capital investment. These advantages can enhance cash flow, allowing investors to maximize their returns. 

In addition to these key reasons, car washes investments are also:

• Amazon-proof

• Internet resistant

• Service-based

• Require minimal labor

• Boast high-profit margins

The combination of consistent consumer demand, coupled with operational efficiency and strong financial returns positions car washes as a compelling choice for long-term investments, minimizing investor risk and maximizing returns.

AquaSonic is at the forefront of this industry transformation. Our brand stands out with its consumer-driven approach and elite position in the market, offering proprietary state-of-the-art equipment and technology. Our cutting-edge approach and commitment to excellence set us apart from competitors.

If you're looking to invest in a rapidly growing and profitable sector, now is the perfect time to join us. 

Click here for more information about Fund 3, which includes 5 future locations in Florida, and is now open for accredited investors.