WeBuyCars under siege

WeBuyCars is under siege due to mounting consumer pressure stemming from dubious practices and increased competition from inexpensive Chinese cars.

When WeBuyCars listed on the Johannesburg Stock Exchange (JSE) in April 2024, it quickly became a darling among investors.

Many analysts highlighted that it was a well-run business with a strong management team and a competitive advantage due to its scale.

Investors piled into the stock, and WeBuyCars’ share price increased by over 100% in its first year on the market.

However, its star started to fade this year. In the second half of 2025, the WeBuyCars share price declined by 20%.

The share price declined despite WeBuyCars posting a strong set of financial results for the year ended 30 September 2025.

One of the main challenges was that it faced margin pressure due to structural shifts within the South African automotive industry.

Many South Africans who previously would have purchased a secondhand car are opting for affordable Chinese brands.

WeBuyCars said the strength of the new vehicle market and the rise of cheap Chinese cars have shifted consumer behaviour.

It specifically mentioned GWM, Chery, Omoda, Jaecoo, Jetour, MG, JAC and BAIC offering new cars at low price points.

“These brands have captured notable market share through attractive pricing and compelling new-vehicle offerings,” WeBuyCars said.

To maintain liquidity and ensure healthy inventory turns, WeBuyCars adjusted selling prices on vehicles competing within these price brackets.

“This proactive measure placed short-term pressure on margins during the second half of the year,” it said.

WeBuyCars responded by altering its buying and selling behaviour towards more affordable, faster-moving inventory.

This change is delivering improved sales volumes and margins, with the lessons learnt during this period setting the company up for a better future.

Consumer pressure on WeBuyCars

In December 2025, WeBuyCars reached a settlement agreement with the National Consumer Commission (NCC) linked to consumer complaints.

This settlement followed numerous consumer complaints about WeBuyCars over the last three years.

WeBuyCars clients complained that the company failed to provide remedies based on the sale agreements signed between the supplier and the consumers.

The NCC formed a reasonable suspicion that WeBuyCars’ terms and conditions contravened several provisions of the Consumer Protection Act (CPA).

The problem related to WeBuyCars’ warranty and terms of sale which did not align with South Africa’s legal requirements.

The NCC investigated the complaints lodged by the consumers and found that the terms and conditions of the sale agreements contravened the CPA.

WeBuyCars settled the issue, which included paying an administrative fine of R2.5 million and refunding R3.420 million to 31 affected consumers.

The company also need to revise its terms and conditions to align with the Consumer Protection Act.

WeBuyCars committed to a Consumer Awareness Programme to enhance consumer education concerning the purchasing of pre-owned motor vehicles.

The company will also create 300 new job opportunities over the next five years, in addition to the current planned employment opportunities.

“This settlement concludes investigations against WeBuyCars on contraventions of the CPA,” said Acting National Consumer Tribunal Commissioner Hardin Ratshisusu.

“WeBuyCars has agreed to review and amend terms and conditions to ensure full compliance with the CPA.”