WeBuyCars responds to idea of selling new vehicles in South Africa

It was reported that the company was approached by some original equipment manufacturers (OEMs) about expanding into the new vehicle space.

“Around 30% of people who sell their vehicle to us go on to buy a brand new vehicle, which we do not offer them at this stage,” the group said. 

“If WeBuyCars also sold new vehicles, consumers could come to one place, weigh their options between new and used, and make a more informed decision.”

However, chief marketing officer Rikus Blomerus told BusinessTech the group is not considering selling new vehicles at this stage, and is still focused on expanding its footprint in South Africa.

“WeBuyCars has in the past been approached by OEMs to sell their models through our distribution network, however we do not have plans to include new cars in our inventory at this stage,” he said.

“We are 100% focused on expanding our geographic footprint and digital capabilities in order to achieve our goal of 23,000 used cars sales per month by 2028.”

Despite noting that OEMs are approaching WeBuyCars rather than the other way around, Blomerus said it comes at a time when cheaper new vehicles could impact the second-hand market.

TransUnion’s latest Mobility Insights Report highlighted this trend, noting that more South African buyers opt for affordable new vehicles rather than pre-owned premium models. 

“South Africa’s car market is shifting from luxury brands to more affordable options, driven by rising financial pressure on households,” the report said. 

It added that Chinese brands are increasingly perceived as offering solid quality and good value for money.

There are also concerns that spare parts and after-sales service are beginning to fade as these brands grow their dealer and service networks.

This shift is reflected in the latest vehicle registration data. New passenger vehicle registrations surged by 19.1% in the first quarter of 2025 compared to the same period the previous year. 

By contrast, growth in used passenger vehicle registrations slowed significantly, from 4.7% in the fourth quarter of 2024 to just 0.9% in Q1 2025. 

TransUnion said this was due to easing interest rates, better availability of entry-level models, and aggressive incentives from Asian manufacturers, which pull consumers toward new rather than used vehicles.

 “This growing demand for affordable new models is starting to squeeze the used car market,” the report noted.

WeBuyCars continues to grow

Despite these pressures, WeBuyCars CEO Faan van der Walt said the impact on the used car segment has been limited for now. 

In comments to BusinessTech, he said the influx of low-cost Asian vehicles is more of a concern for premium new car brands than for the second-hand market. 

He also welcomed the broader range of affordable options entering the market, saying it benefits consumers overall.

WeBuyCars continues to dominate South Africa’s used vehicle sector. It sells over 15,000 cars monthly across 17 vehicle supermarkets and 93 buying pods nationwide. 

This improved operational performance boosted the company’s financial results, with its revenue growing 15.2% to R13.1 billion.

The company reported strong growth in its most recent financial results, with buying and selling volumes rising to 92,339 and 91,392 units, up 12.9% and 13.5% year-on-year, respectively. 

The company even set a new monthly record in November 2024, selling 16,294 units.

Looking ahead, WeBuyCars plans to expand further by opening three new facilities by the end of the year.

These facilities will be in Cape Town, Montana (Pretoria), and Vereeniging, which is expected to create 500 new jobs. 

This adds to the recent expansions in Pietermaritzburg, George, Polokwane, The Dome, Johannesburg South, Riverhorse Valley, and Gqeberha.

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/motoring/829567/webuycars-responds-to-idea-of-selling-new-vehicles-in-south-africa/