Pay per wash

Pay per wash

Rent instead of buying. Anyone who deals with trends can hardly avoid this motto in various areas, alongside topics such as digitalization or sustainability. This also applies to Matthias Bertoldi, Austrian managing director of the German car wash specialist Washtec. In order to take this trend into account, he has decided to cooperate with linx4. This is an Austrian start-up that specializes in usage-based financing. It leases or rents machines and bills them based on their actual use. In the case of Washtec, the model is called “Pay-per-Wash”. Corresponding contracts in which the rent is based on actual sales are offered to interested customers. linx4 buys the car washes from Washtec and then concludes the corresponding rental agreements with the car wash operators. The latter get everything from a single source, i.e. a package including financing, maintenance and consumables. This is where Washtec comes into play. 

All of this is only possible thanks to the digitalization that has already taken place: Washtec lives up to its reputation as one of the world's leading providers of innovative solutions for vehicle washing and, with SmartSite, has a system with a remote connection in its range that enables remote access and networking of the systems. For Washtec Austria, the new rental model, which starts in December, opens up new customer groups. Those who cannot or do not want to purchase a new car wash. “The rental model naturally has the appeal that the financial burden, including on the customer’s balance sheet, is eliminated,” explains Bertoldi. You can optimize your cash flow, improve your credit rating if necessary and otherwise don't have to worry about much. Finally, the rental package also includes a service contract. 

But how does it all work in detail? “There is an assessment of potential in advance,” explains Bertoldi. Based on this, a basic rental amount is calculated, and then there is a flexible rental component, which is calculated based on the actual use of the system. Washtec receives ongoing maintenance and consumables payments. And the customer has flexible, needs-based repayment rates. Such a rental model can sometimes make sense, especially for car dealerships or workshops. 

Shared growth

"With Pay-per-Wash, Washtec and linx4 have jointly introduced an innovative financing model for the car washes of the future," explains linx4 boss Paul Bruckberger, who founded the start-up together with his father: "The car wash operator no longer has to worry about anything, financing, insurance, service, maintenance, chemicals - everything is included and from a single source. The car wash operator only pays a certain amount per wash." Not only does the car wash operator relieve the burden on his balance sheet, linx4 also assumes up to 75 percent of the utilization risk if things don't go well, as Bruckberger explains. Car washes in particular would be perfect for a pay-per-wash model because the car wash operators’ customers also pay per wash. The cooperation is expected to result in “strong joint growth” in order to support Washtec in remaining the market leader and opening up new areas of business.