WeBuyCars is facing growing pressure as a result of questionable practices and increasing competition from Chinese car brands.
The used car trading company listed itself on the Johannesburg Stock Exchange in April 2024 and quickly became a hot topic for investment.
At the time, analysts described WeBuyCars as a well-run business with a strong management team and a competitive advantage due to its widespread coverage across South Africa.
As a result, the company’s share price increased by over 100% in its first year on the market.
However, this momentum did not carry through to 2025, as share prices dropped by 20% in the latter half of last year.
This is despite WeBuyCars posting a strong set of financial results for the financial year ended 30 September 2025.
One of the main reasons for this drop off is the changing automotive landscape, as consumers are moving away from the pre-owned segment back towards new cars.
This shift is primarily attributed to the influx of new Chinese car brands, which offer models that are significantly more affordable than their legacy competitors.
In fact, many Chinese cars are so much cheaper that they are able to compete with second-hand prices from other brands.
For example, it is possible to purchase a new Chery Tiggo 4 Pro, which is equipped with things like a large infotainment screen and a rearview camera, for roughly the same price as a used VW Polo with tens of thousands of kilometres on the odometre.
Motorists have cottoned on to this fact, and are now shifting to Chinese cars that offer better value for money than what can be found on second-hand trading platforms like WeBuyCars and AutoTrader.
WeBuyCars confirmed this, stating that brands like Chery, GWM, Omoda, Jaecoo, Jetour, MG, JAC, and BAIC are able to offer brand-new cars at lower 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, reported Daily Investor.
“This proactive measure placed short-term pressure on margins during the second half of the year,” it said.
In response, the company adjusted its strategy to buy and sell cheaper, faster-moving inventory.
Consumer complaints
WeBuyCars is also facing growing scrutiny from consumers over its business practices.
In December 2025, the company reached a settlement with the National Consumer Commission (NCC) over to consumer complaints.
Over the last three years, WeBuyCars has received numerous complaints from customers who said it failed to provide remedies based on the sale agreements signed between the supplier and consumers.
The NCC formed a reasonable suspicion that WeBuyCars’ terms and conditions contravened several provisions of the Consumer Protection Act (CPA).
It found that WeBuyCar’s warranty and terms of sale did not align with South African legal requirements.
The NCC investigated the complaints and determined that the terms and conditions of the sales agreement contravened the CPA.
WeBuyCars settled the issue with an administrative fine of R2.5 million and refunded R3.4 million to 31 affected customers.
It also has to revise its terms and conditions to align with the CPA.
“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.”
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