Good news for South Africans buying a new car

The latest WeBuyCars results revealed that the price of secondhand cars in South Africa declined over the last six months, which is good news for consumers.

On Monday, 18 May 2026, WeBuyCars released its consolidated interim results for the six months ended 31 March 2026.

It increased revenue by 7.8% to R14.2 billion, it bought and sold more cars, and it increased its parking bays by 31% to 15,614.

However, earnings were down, and net cash generated from operating activities declined 77% to R65 million.

The reason WeBuyCars struggled to improve its bottom line is increased competition from affordable Chinese cars in South Africa.

South Africa’s new vehicle market grew 15.7% in the 2025 calendar year, driven by the aggressive rise of competitively priced Chinese brands.

Brands like Chery, GWM, Haval, Jetour, BYD, and Omoda have captured significant market share through attractive pricing and compelling finance offerings.

These cars are so aggressively priced that people can now buy a new vehicle rather than a secondhand one.

Traditional manufacturers, in an attempt to regain lost ground, responded in kind, further intensifying price competition and compressing the value differential.

WeBuyCars explained that the current strength of the new-vehicle market continues to put pressure on margins across the used-vehicle sector.

The situation has reached such a level that WeBuyCars and other secondhand car dealerships have been forced to cut prices.

“To maintain liquidity and ensure healthy inventory turns, the selling prices of the group’s inventories were adjusted downwards,” WeBuyCars said.

The company explained that this was a proactive and necessary response, but one that placed further pressure on the group’s margins.

Although it is bad news for WeBuyCars in the short term, it is good news for consumers looking to buy a new or secondhand car.

Analyst opinion about WeBuyCars

Cobus Potgieter, Chief Investment Officer and Portfolio Manager at SouthernCross Capital, said WeBuyCars’ results were disappointing.

He said the market expected WeBuyCars to grow revenue by around 11%, but it delivered only 7.8%.

He said that despite the worse-than-expected results, the WeBuyCars share price increased significantly on Monday.

This means that, relative to the interim results statement, it’s perhaps not as painful as expected.

Potgieter explained that WeBuyCars’ business is cyclical, and that the influx of the affordable Chinese cars forms part of the current cycle.

“Asian brands are disrupting the market, affecting turnover and the ability to command a premium for these used vehicles,” he said.

“However, ultimately, these new Chinese cars will become the new feedstock in the WeBuyCars business model.”

“In the medium term, the new cars will age. Over time, when the consumer comes under pressure again, they will shift back to used vehicles.”

He added that in the long term, WeBuyCars is such a strong business and is so well-positioned that it is unlikely to face real competition from the likes of Weelee.

“There is still significant consolidation happening in the dealership space, and this is a business that does better the bigger it gets. The scale just benefits them,” he said.

“WeBuyCars continues to invest in the business. They’re opening another Supermarket in Bloemfontein in the coming period.”

Potgieter said that investors must be cognizant of the risks, and if they are trying to time the market, this might be a bad point in the cycle for this business.

“Ultimately, though, it’s not the end of the party. The rating is quite reasonable at the moment, so it’s perhaps still not a bad entry point,” he said.