WeBuyCars Thrives Despite Growing Market Pressures

South Africa’s automotive landscape is changing fast, and WeBuyCars is feeling the shift. The company reported a 15% increase in core headline earnings, reaching R937 million for the year ended 30 September 2025, despite facing fierce competition and a challenging economic climate.

The used car market, long considered a stable segment, is now under pressure as consumers flock to new vehicles, particularly affordable Chinese brands, and digital platforms like AutoTrader ramp up competition.

Rising Competition and Market Shifts

New car sales in South Africa grew by over 20% year-on-year, driven by lower interest rates and higher real wages. The surge in new, competitively priced vehicles from brands such as GWM, Chery, MG, and JAC has also affected consumer behavior, drawing buyers away from the used car market.

WeBuyCars acknowledged margin pressures caused by these structural shifts. “To maintain liquidity and healthy inventory turns, we adjusted selling prices on vehicles competing within these price brackets,” the company said.

This proactive approach allowed WeBuyCars to focus on faster-moving, affordable inventory, positioning itself to meet current consumer demand.

Financial Highlights: Growth in Tough Times

Even amid these headwinds, the company reported solid financial performance:

• Revenue: R13.1% year-on-year growth, driven by robust buying and selling volumes.

• Operating profit: R1.3 billion, up 9.7%.

• Core headline earnings per share: 224.6 cents, a 3.3% increase, influenced by the issuance of 83 million new shares during the year.

• Cash dividend: 30 cents per share, up 20%, following a 14.5% rise in net cash generation to R677 million.

The company’s sales activity remained strong, moving nearly 15,000 vehicles per month, showcasing resilience even as consumer confidence fluctuated.

Expansion: More Capacity to Meet Demand

WeBuyCars continues to invest heavily in national footprint expansion and infrastructure. New supermarkets in Rustenburg and Vereeniging added 300 and 550 parking bays, respectively, and existing facilities were upgraded in key locations including Pietermaritzburg, George, Polokwane, Mbombela, Johannesburg, Gqeberha, and Germiston.

By 30 September 2025, the company’s national capacity reached 12,911 parking bays, with planned openings in Montana (Pretoria) and Lansdowne (Cape Town) set to boost capacity by over 20%.

This expansion reflects WeBuyCars’ commitment to service accessibility and operational efficiency, ensuring it can continue capturing market share even as consumer preferences shift.

Long-Term Optimism

Despite near-term challenges, WeBuyCars remains optimistic. The influx of new vehicles, especially from Asian brands, is expected to feed the used car market in the years ahead, expanding the company’s acquisition base and long-term opportunities.

The company’s strategy, adapting inventory, maintaining liquidity, and expanding infrastructurepositions it well to navigate South Africa’s dynamic automotive market, even as the sector experiences rapid change.