WeBuyCars in hot water

WeBuyCars has agreed to pay an administrative penalty and provide redress to affected consumers as part of a settlement agreement with the National Consumer Commission (NCC). 

The agreement comes after the NCC investigated complaints by customers over the past three years, which alleged that WeBuyCars refused to take responsibility for issues their cars developed within six months of purchase. 

Following the investigation, the NCC found that WeBuyCars’ terms and conditions contravened the Consumer Protection Act (CPA).

The company is set to pay a R2.5 million fine on top of the R3.4 million it paid to the 31 customers who took their cases to the NCC. 

WeBuyCars has responded to the approval of the settlement agreement by the National Consumer Tribunal, highlighting that these cases remain a fraction of the total number of vehicles sold. 

The company highlighted that in 2024, it sold 172,320 pre-owned cars, with only 0.36% of customers approaching various institutions for dispute resolution. 

“The majority of these matters were resolved amicably or in WeBuyCars’ favour. This record demonstrates that WeBuyCars conducts their business responsibly and in accordance with the CPA,” the company said. 

“This settlement brings finality to legacy matters identified by the NCC and allows us to focus fully on forward-looking compliance and safeguarding the interests of our customers.”

WeBuyCars has implemented a number of operational improvements to enhance its consumer-facing processes and strengthen its compliance. 

This includes changes made to the company’s terms and conditions to bring them into line with the CPA and ensure they adhere to industry best practices. 

“As part of our commitment to continuous improvement, we actively enhance our compliance with the CPA and value the business guidance and interventions provided by the NCC,” WeBuyCars said. 

“This collaborative approach helps ensure that our operations remain aligned with best practice and regulatory expectations.”

WeBuyCars said it also works closely with the Motor Industry Ombud of South Africa and consistently abides by its rulings and recommendations. 

“To put this in context, in 2024 we sold 172,320 pre-owned vehicles, with only 0.36% of customers approaching the Ombud for dispute resolution,” the company said.  

“We remain committed to transparency, ethical conduct, and continuous improvement. We continue to invest in training, systems, and customer support to ensure fair outcomes for our customers.” 

Chinese competition

WeBuyCars’ settlement agreement with the NCC comes amid increasing competition for the used car giant from new Chinese vehicles. 

These vehicles, while new, are sold at very attractive price points for consumers, luring some away from the used car market. 

In its latest set of financial results for the year ended 30 September 2025, WeBuyCars admitted that it is operating in an increasingly competitive environment. 

Most notably, new car sales have skyrocketed in South Africa, growing by over 20% year-on-year, as interest rate cuts and strong real wage growth boost affordability. 

WeBuyCars said the second half of the year was particularly challenging, with volumes coming under pressure amid low economic growth, low consumer confidence, and lower bank approval rates. 

It also revealed that it experienced margin pressure resulting from structural shifts within the South African automotive industry, pointing to the strong growth seen in the new car market. 

More affordable Chinese brands have also impacted WeBuyCars, with these companies offering new cars at low price points. 

“The continued strength of the new vehicle market, together with the rapid rise of competitively priced Chinese brands, including GWM, Chery, Omoda, Jaecoo, Jetour, MG, JAC and BAIC, has significantly influenced consumer behaviour and heightened competition,” WeBuyCars said. 

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

“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.”

WeBuyCars responded to these growing challenges by altering its buying and selling behaviour towards more affordable, faster-moving inventory that aligns with current market demand. 

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

“The buoyant new vehicle market and the growing penetration of Asian brands are expected to have a positive long-term impact for WeBuyCars, as these vehicles will enter the used-vehicle market in the future. This will expand the Group’s acquisition base and opportunity set,” it said.