WeBuyCars loses R3.70 billion in seven days

WeBuyCars’ share price has plummeted by 16.75% over the last seven trading days, which saw its market cap decline from R22.09 billion to R18.39 billion.

WeBuyCars has been under pressure in recent months, with numerous negative reports about the company making headlines.

The first was a National Consumer Commission (NCC) investigation, which found that WeBuyCars was guilty of wrongdoing.

It followed customer complaints alleging that WeBuyCars refused to take responsibility for issues their cars developed within 6 months of purchase.

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

WeBuyCars has agreed to pay an administrative penalty and provide redress to affected consumers as part of a settlement agreement.

On the operational front, WeBuyCars is facing increased competition from affordable Chinese cars, which are gaining market share in South Africa.

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 in South Africa have increased by over 20% year-on-year, as interest rate cuts and strong real wage growth boost affordability.

It also faced margin pressure due to structural shifts in the South African automotive industry, driven by strong growth in the new-car market.

It pointed to the rapid rise of competitively priced Chinese brands, including GWM, Chery, Omoda, Jaecoo, Jetour, MG, JAC, and BAIC.

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

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

WeBuyCars founders sell shares worth R866 million

Earlier this week, WeBuyCars co-founders and co-CEOs Faan and Dirk van der Walt sold R866.4 million worth of shares in the company.

The company said the share sale was part of their personal investment diversification and estate planning.

“The proceeds of the disposal will primarily be applied towards family-related obligations and personal investments,” WeBuyCars said.

“The disposal formed part of a considered process of portfolio management, rebalancing, and diversification.”

The company added that this process is partly due to WeBuyCars’ share price performance over an extended period.

This had resulted in the brothers’ shareholding representing a disproportionately large portion of their personal wealth.

However, some investors questioned why they would sell their shares now, given that Dirk van der Walt had bought R20.5 million in shares less than three months ago.

On 20 November 2025, Dirk van der Walt bought 450,000 WeBuyCars shares at an average price of R45.46 per share.

It raises concerns among some investors that the Van der Walt brothers are not as fully committed to the company as the company’s statement suggests.

The market did not like what it saw, and the WeBuyCars share price plummeted from R52.85 on 23 January 2026 to R44.00 on 3 February 2026.

This means that WeBuyCars’ market cap declined from R22.09 billion to R18.39 billion in seven trading days, destroying R3.70 billion in value.

WeBuyCars share price