WeBuyCars Evolves Its Business Model Amid Shifting Vehicle Market Dynamics
WeBuyCars, one of South Africa’s leading used‑car retailers, is broadening its traditional buy‑and‑sell approach by integrating vehicles sourced from third‑party partners such as banks, rental fleets and independent dealers. This strategic shift, highlighted by CEO Faan van der Walt, aims to turn what was once a peripheral activity into a core revenue stream.
Third‑Party Vehicle Sourcing Gains Traction
Over the past two years the company has helped financial institutions dispose of repossessed cars and assisted struggling dealers in off‑loading fleet inventory. Van der Walt described the initiative as “going well” and noted that a dedicated team now manages relationships with banks and other corporate sellers.
Although the service has not yet been deployed across every outlet, van der Walt calls it a “natural expansion” of the business, driven by market demand and executed with disciplined risk management.
Technology‑Driven Inspection Platform Adds Value
Deputy CEO Wynand Beukes points to the group’s proprietary inspection tool, Inspectify, as another source of competitive advantage. The digital platform, currently active in 19 offices, has completed nearly 95,000 vehicle assessments and improved condition‑rating accuracy by roughly 30 %.
Beukes explains that the system enforces tighter price discipline, reduces losses from mis‑graded stock, and holds longer‑term commercial potential. “We could offer this service to the broader market in due course,” he said, adding that external interest already suggests a future revenue stream for the group.
Impact of Asian‑Brand Vehicles on Pricing and Volume
The influx of competitively priced new Asian vehicles—particularly Chinese brands—has pressured used‑car prices nationwide. Beukes reports that Chinese‑badged cars now represent about 5 % of the group’s traded volume, with sales rising from just over 3,000 units in 2024 to almost 4,000 in 2025. In the first half of 2026, sales of these models have already approached the full‑year total for 2025.
Many of these vehicles, purchased in recent years, are beginning to appear on the used market. Erasmus of Anchor Capital notes that while individual prices for used Chinese cars tend to be lower, the resulting volume increase can offset margin pressure and create a sales opportunity for high‑volume dealers like WeBuyCars.
Recent Financial Performance Highlights Both Strengths and Pressures
For the six months ended March 2026, WeBuyCars expanded its footprint to 20 vehicle supermarkets (up from 17) and increased its presence to 109 shopping‑center locations (from 93). The company purchased 95,328 vehicles and sold 93,519 units, generating sales of R14.2 billion—a 7.8 % year‑on‑year increase.
March 2026 set an all‑time monthly record with 17,209 vehicles** sold. Despite the top‑line growth, headline earnings per share slipped 1.7 % to 119.7 cents, a reflection of margin pressure caused by softer used‑car pricing and higher inventory levels prior to full model recalibration.
Analyst Views Reinforce Long‑Term Outlook
- Stephen Erasmus (Anchor Capital) argues that the group’s long‑term growth trajectory remains intact. He highlights the upcoming wave of Asian‑brand vehicles entering the used market as a potential volume driver, even if per‑unit prices are modest.
- Meyrick Barker (Camissa Asset Management) cautions against interpreting the recent EPS dip as a structural flaw. He attributes the short‑term weakness to cyclical vehicle price dynamics and notes that WeBuyCars’ brand‑agnostic model gives it flexibility to adapt to shifting consumer preferences, including rising demand for Asian makes.
- Barker also points out that the growing presence of Asian brands benefits consumers by expanding choice and lowering new‑car prices, though it contributes to used‑car price deflation in the near term.
Looking Ahead
WeBuyCars is positioning itself to capitalize on two converging trends: the continued expansion of third‑party vehicle sourcing channels and the gradual maturation of Asian‑brand inventory in the used‑car sector. By leveraging its inspection technology, maintaining a disciplined purchasing approach, and retaining the ability to pivot across brands and price points, the group aims to sustain revenue growth while navigating short‑term margin challenges.
As the national vehicle fleet expands and more cars transition to the secondary market, WeBuyCars’ adaptable, data‑driven model could provide a stable platform for long‑term value creation—provided it continues to balance volume gains with prudent pricing and risk management.
