The Financial Feasibility Analysis of Investing in a Self-Service Car Wash Business: A Case Study of Bangkok

Abstract

This study aimed to investigate (1) the water resource management systems and environmental impacts of self-service car wash businesses, and (2) the financial feasibility of investing in self-service car washes evaluated using financial indicators. This study employed a qualitative research design combined with quantitative analysis to construct a financial model. Data were collected through in-depth interviews with three purposively selected entrepreneurs. Financial feasibility was evaluated using capital budgeting criteria, including Net Present Value (NPV), Benefit-Cost Ratio (B/C Ratio), Internal Rate of Return (IRR), Payback Period (PB), and Sensitivity Analysis. The results of the study found that (1) regarding environmental and water resource management, the business demonstrates potential for applying the 3Rs principle. Water consumption is reduced through high-pressure pump systems (80–110 liters per vehicle). Furthermore, wastewater is systematically managed using sand traps and grease traps to separate chemicals before being legally discharged into public water sources. (2) Regarding financial feasibility, a 7-bay service project over a 5-year period with a 6.0% discount rate is highly viable. It yields an NPV of 934,923 baht, a B/C Ratio of 1.35, an IRR of 40.59%, and a rapid Payback Period of 2 years and 4 days. Sensitivity analysis shows strong resilience to risk, remaining feasible even if revenue decreases by up to 25.96% or operating costs increase by up to 35.06%. In conclusion, investing in this project is highly feasible; however, business strategies must be adapted to align with market trends to ensure long-term competitiveness and sustainability.