Trouble continues to mount for WeBuyCars as the company faces a R2.5 million administrative fine and is ordered to refund over R3.4 million to affected consumers after regulators ruled that its sales terms violated South Africa’s Consumer Protection Act (CPA). This regulatory blow comes at a time when WeBuyCars is already under pressure from growing consumer dissatisfaction and fierce competition from low-cost Chinese automakers, threatening the company’s once meteoric rise.
When WeBuyCars debuted on the Johannesburg Stock Exchange (JSE) in April 2024, it quickly became a favorite among investors. Analysts praised its strong management team, operational efficiency, and scale-driven competitive advantage. Investor enthusiasm propelled its share price to double within its first year of listing.
However, the momentum stalled in 2025. Despite reporting robust financial results for the year ended 30 September 2025, the company’s share price fell 20% in the second half of the year. The decline reflects structural shifts in South Africa’s automotive market rather than operational missteps.
The Chinese Disruption
Traditionally, South Africans seeking affordable vehicles turned to secondhand cars. Today, many are opting for budget-friendly new models from Chinese brands, including GWM, Chery, Omoda, Jaecoo, Jetour, MG, JAC, and BAIC. These brands have captured significant market share through aggressive pricing and compelling new-vehicle offerings, forcing WeBuyCars to rethink its pricing strategy.
To maintain liquidity and ensure rapid inventory turnover, WeBuyCars adjusted selling prices for vehicles competing in these price brackets. While this move preserved competitiveness, it exerted short-term pressure on margins. In response, the company shifted its buying and selling behavior toward more affordable, faster-moving inventory, a strategy that is now improving sales volumes and profitability.
Consumer Complaints and Regulatory Action
Adding to its challenges, WeBuyCars faced regulatory scrutiny over consumer complaints. In December 2025, the company reached a settlement with the National Consumer Commission (NCC) following allegations that its terms and conditions violated the Consumer Protection Act (CPA).
The NCC found that WeBuyCars’ warranty and sales terms failed to comply with legal requirements. As part of the settlement, the company agreed to:
- Pay an administrative fine of R2.5 million
- Refund R3.42 million to 31 affected consumers
- Revise its terms and conditions to align with the CPA
- Launch a Consumer Awareness Programme to educate buyers about purchasing pre-owned vehicles
- Create 300 new jobs over the next five years, in addition to planned hiring initiatives
Acting National Consumer Tribunal Commissioner Hardin Ratshisusu, commented:
This settlement concludes investigations against WeBuyCars on contraventions of the CPA. WeBuyCars has agreed to review and amend terms and conditions to ensure full compliance.
Despite these setbacks, WeBuyCars remains a major player in South Africa’s automotive sector. Its recent operational adjustments and commitment to compliance signal a renewed focus on sustainability and consumer trust. However, with Chinese automakers reshaping market dynamics and heightened regulatory oversight, the company faces a critical test of resilience and adaptability.
