Latest news with #WeBuyCars
News24
2 days ago
- Automotive
- News24
Don't miss the Bull Run 2025 experience
SPONSORED: Rally your crew and secure your spectator tickets and tented accommodation! We can almost hear the engines rumbling! Bull Run returns from 9 to 12 October 2025 in Vanwyksvlei in the Northern Cape. The well-known venue transforms into a motorhead's paradise at the legendary Weg Ry & Sleep Bull Run and we expect nothing less this year. There are car shows, and then there's The Bull Run – a revved-up, dust-kicking celebration of horsepower, humour, and hardcore nostalgia. Even if you're not behind the wheel – the real party happens on the sidelines, so you don't want to miss out! It's all about roaring engines, themed teams, braais, and stories you'll be retelling for years to come. Spectator tickets are now on sale for just R1 800 – giving you full access to all the festivities that make Bull Run unforgettable. And if you're looking for comfort in the chaos, book a tented accommodation package for only R4 600 (sleeps two for the whole weekend). No stress, just vibes. What's more, this year boasts some of the most amazing partners: the indestructible Stanley, the pocketknife and multi tool everyone wants – Leatherman – and the name who can tell you everything you want to know about buying and selling cars – We Buy Cars. Whether you're cheering on your crew or soaking in the old-school V8 roar, this is one weekend you won't want to miss.
Daily Maverick
20-05-2025
- Automotive
- Daily Maverick
WeBuyCars' billion-rand bet: Strong earnings, rapid expansion, market risks
The recently listed vehicle retailer posted R508-million in core headline earnings, declared its second dividend and expanded its national footprint – but as interest rates rise and political uncertainty deepens, is this growth model more fragile than it looks? From niche operator to market juggernaut in fewer than five years, WeBuyCars now commands the country's most-visited car retail platform. Just more than a year since its listing on the JSE on 11 April 2024, the company has scaled rapidly. The unbundling from Transaction Capital laid the groundwork for this growth spurt, allowing the group to execute a focused expansion and technology strategy. But beneath the billion-rand milestones, cracks are beginning to show – in cash flow, inventory movement and capital exposure. advertisement Don't want to see this? Remove ads 'WeBuyCars continues to make meaningful progress towards its goal of 23,000 vehicles per month,' said CEO Faan van der Walt in a SENS announcement issued on Monday, reaffirming the company's FY2028 volume ambition. Whether that goal is still realistic remains a growing question. Cars by the numbers Revenue rose 15.2% to R13.13-billion. Units sold and bought both climbed over 12%. Core headline earnings hit R508.2-million, while basic earnings rebounded from a R69.5-million loss to R507-million. Core headline earnings per share, however, barely moved – up just 1.6% – diluted by the 83 million new shares issued in the company's pre-listing capital raise. Read more: The Finance Ghost – The market lowdown on MTN, Vodacom and WeBuyCars WeBuyCars says the dilution was a one-off pre-listing technicality. 'The share dilution was a one-off occurrence; this happened prior to the listing due to the shareholders at the time. At this point no capital was taken onto the WeBuyCars balance sheet,' chief marketing officer Rikus Blomerus said in response to questions from Daily Maverick. advertisement Don't want to see this? Remove ads The board declared a 30-cent dividend, in line with its policy to return 25% to 33% of headline earnings. For most shareholders, the net payout after dividend withholding tax will amount to 24c per share. While modest, the payout underscores the company's balancing act between expansion and capital return. WeBuyCars also recorded its best month yet in November 2024, moving 16,294 vehicles – a record the company says validates its volume strategy. Perception vs performance – who is actually buying? While anecdotally some perceive that WeBuyCars remains a brand many say they wouldn't buy from, this isn't supported by the data. A review of the company's HelloPeter reviews indicates an overall score of 4.34 out of five, based on more than 30,000 reviews submitted. More than 91,000 vehicles were sold in six months. The platform draws more than eight million monthly visits and its national footprint is expanding aggressively. The disconnect between reputation and performance may be chalked up to market segmentation: the business thrives with budget-conscious, convenience-focused consumers, while its critics tend to come from higher-income demographics. That may not matter. As the numbers show, mass-market trust is intact. But a deeper look at the balance sheet reveals the risk behind the revenue: stockpiles are growing faster than sales. Inventory accumulation Inventory levels surged by 30.8% to R2.78-billion, far outpacing the 13.5% growth in units sold. The average inventory value per vehicle rose 12% to R184,084, reflecting both inflation and a shift towards newer, financeable stock. advertisement Don't want to see this? Remove ads advertisement Don't want to see this? Remove ads But the increase in inventory write-downs – from R36.3-million to R47.6-million – suggests a worrying build-up. Despite claims of nimble logistics and AI-driven pricing, some vehicles are sitting far longer than intended. Warehouse capacity has expanded to 11,902 bays, yet many of these are visibly under-rotated, raising concerns about liquidity tied up in ageing inventory. According to automotive industry expert Edward Makwana, in an interview with Daily Maverick: 'Inventory build-up tends to occur when consumer demand softens due to factors such as rising interest rates, constrained disposable income, job losses and tightening credit conditions. Retailers often stock up in anticipation of demand that doesn't materialise.' In South Africa, he adds, this mismatch is amplified by load shedding, fuel price volatility and overly aggressive stock procurement. Driving expansion Since October, WeBuyCars has launched its Rustenburg supermarket, relocated and expanded Pietermaritzburg, and upgraded seven additional locations. New sites in Vereeniging, Lansdowne (Cape Town) and Montana (Pretoria North) are scheduled to open by year-end, bringing another 3,000 vehicle spaces online. The group's footprint now spans 93 buying pods – a level of physical reach unmatched in the sector. Expansion is being funded through a mix of internal cash and debt, including R955.6-million in property mortgages. A further R453.8-million in capital spending has been committed, with major new builds under way: Lansdowne will cover 30,400m2, and Montana 17,450m2. advertisement Don't want to see this? Remove ads advertisement Don't want to see this? Remove ads Makwana notes that while large-format used car supermarkets retain an edge in brand trust and stock variety, the market is shifting. 'The most competitive players will be those who can blend physical infrastructure with a scalable, tech-driven ecosystem, offering convenience without compromising trust.' Cash flow pressure and capital commitments Growth is expensive. And increasingly, it's being funded with borrowed money and shrinking cash. Net operating cash flow rose modestly to R284.1-million, but it's not keeping pace with the R370-million already spent on capex, nor the R453.8-million still to be deployed. Cash and cash equivalents dropped from R147-million to a negative R74.1-million – a striking reversal for a company posting record earnings. Management insists that capital deployment remains 'disciplined', but the widening gap between liquidity and infrastructure spend is hard to ignore. For a company with rising profits, its cash flow profile is unusually tight. Digital traction, offline drag WeBuyCars calls itself 'the simplest way to sell a car'. The digital numbers back that up: 8.7 million monthly visits, 2.6 million unique users. The group's tech stack for lead qualification and dynamic pricing continues to be a strategic asset. advertisement Don't want to see this? Remove ads But it's unclear how much of that traffic is converting into actual turnover, or how well the system copes with slow-moving stock. As vehicle financing becomes tougher to access, WeBuyCars may find that clicks alone don't move cars. WeBuyCars says technology plays a major role in both lead generation and conversion. 'Approximately 25% of our sales comes from our online auctions,' it said. 'Even when sales aren't fully online, consumers use technology to make more informed decisions. Our sales-to-leads ratio has improved significantly over the past year.' Headwinds and hazards South African consumers remain under pressure. Real wages are flat. Credit is tighter. Disposable income is being squeezed. The GNU's post-election Budget negotiations have created policy limbo, adding uncertainty to interest rates, taxes and state support for consumer goods. Globally, US tariff shifts and rand volatility are affecting sentiment. And with R1.33-billion in net interest-bearing debt – much of it mortgage-linked – WeBuyCars' model is increasingly sensitive to even modest rate changes. Makwana adds that the R150,000 to R250,000 price band – a key segment for WeBuyCars – is particularly financing-dependent. 'Recent interest rate hikes and stricter lending criteria have significantly impacted buyer affordability. Dealers need to offer flexible finance and insurance solutions to maintain volumes in this segment.' He also warns of structural warning signs for auto retailers: 'Sustained negative free cash flow, ageing stock, underutilised space and an over-reliance on stock turnover over customer experience – these are all red flags.' WeBuyCars' next gear The company's outlook remains bullish: more sites, more stock, more sales. Its strategy hinges on keeping margins intact while scaling – a delicate balance in today's economy. Urban saturation is becoming a real risk, particularly in Gauteng. If volumes flatten while infrastructure grows, the model could be tested. That would shift the conversation from scale to selectivity, from speed to sustainability. But the company says it makes expansion decisions based on rigorous local analysis. 'We closely track market share and consumer behaviour in each area before we make any large investments. We have a lot of data available that gives us great consumer insights in each area,' Blomerus said. 'The evolving political landscape may introduce short-term complexity, but also opportunity,' Van der Walt told investors. As Makwana concludes: 'With R13.1-billion in revenue and over R500-million in core earnings, WeBuyCars clearly retains market momentum. Their consumer reach and trust levels are outperforming traditional dealerships. But future competitiveness will depend on how well they match scale with agility.' If demand softens or capital tightens, the group may find itself parked in the slow lane. DM
The Herald
19-05-2025
- Automotive
- The Herald
WeBuyCars' core headline earnings up by 26%, half-year results show
Used car group WeBuyCars says the number of vehicles it sold increased by 13.5% to 91,392 in the six months to March. The company bought 92,339 cars from consumers, up 12.9%. Core headline earnings for the half-year stood at R508m, growing 26.4% from the previous comparable period. 'This growth trajectory can be attributed to the continuous focus on enhancing and investing in the group's innovative digital business platform.' The company said it experienced buoyant pre-owned vehicle trading conditions in the first four months of the interim period, driven by numerous factors including positivity about the favourable election outcome and the formation of a government of national unity (GNU), lower inflation levels, three consecutive 25 basis point repo rate cuts since September 2024, improving consumer confidence and an injection of cash into the economy from the two-pot retirement system. In February and March 2025, this positivity waned somewhat, however, with consumers adopting a 'wait and see' attitude after experiencing increased uncertainties on numerous fronts including: the cohesive working of the GNU, the since-aborted increases in the VAT rate, concerns after the budget debates and uncertainties relating to US trade tariffs. WeBuyCars has a goal of buying and selling 23,000 vehicles per month by the 2028 full financial year. During the six months to March, WeBuyCars added 10 new buying pods, bringing the group's national footprint to 93. Business Times
TimesLIVE
19-05-2025
- Automotive
- TimesLIVE
WeBuyCars' core headline earnings up by 26%, half-year results show
Used car group WeBuyCars says the number of vehicles it sold increased by 13.5% to 91,392 in the six months to March. The company bought 92,339 cars from consumers, up 12.9%. Core headline earnings for the half-year stood at R508m, growing 26.4% from the previous comparable period. 'This growth trajectory can be attributed to the continuous focus on enhancing and investing in the group's innovative digital business platform.' The company said it experienced buoyant pre-owned vehicle trading conditions in the first four months of the interim period, driven by numerous factors including positivity about the favourable election outcome and the formation of a government of national unity (GNU), lower inflation levels, three consecutive 25 basis point repo rate cuts since September 2024, improving consumer confidence and an injection of cash into the economy from the two-pot retirement system. In February and March 2025, this positivity waned somewhat, however, with consumers adopting a 'wait and see' attitude after experiencing increased uncertainties on numerous fronts including: the cohesive working of the GNU, the since-aborted increases in the VAT rate, concerns after the budget debates and uncertainties relating to US trade tariffs. WeBuyCars has a goal of buying and selling 23,000 vehicles per month by the 2028 full financial year. During the six months to March, WeBuyCars added 10 new buying pods, bringing the group's national footprint to 93.
The Citizen
07-05-2025
- Automotive
- The Citizen
Pirates Rugby Club kicks off new era, partnering with WeBuyCars
Pirates Rugby Club has set the stage for an exciting season by announcing WeBuyCars as its new principal partner ahead of the Castle Lager Pirates Grand Challenge. The partnership, unveiled on March 28, marks a bold step for one of South Africa's most storied rugby clubs. The launch event was truly remarkable, featuring an interactive trivia icebreaker that challenged guests' knowledge of both the rugby club and WeBuyCars. Head coach Barend McKenzie emerged as the victor and generously donated his prize money back to the club, a gesture that sets the tone for a partnership grounded in shared values. Read more: Pirates Rugby Club survives Raiders Rugby Clubs second-half comeback in thrilling season opener Following the fun, a panel discussion explored what this collaboration means for both parties, with a Q&A session allowing guests to delve deeper. The highlight of the evening was the unveiling of Pirates' new kit, embellished with the WeBuyCars branding, symbolising a fresh chapter for the team. 'This partnership is a game-changer for us at Pirates Rugby Club,' said Brad Guymer, chairperson of rugby at Pirates. 'WeBuyCars shares our values of excellence and community, and we're excited about what we can achieve together.' Also read: Touch rugby at its best: Bangers beat Chopa7 by 1 point Rikus Blomerus, chief marketing officer at WeBuyCars, echoed the sentiment. 'Pirates represents heart, grit, and unity – qualities that align perfectly with our brand. We're excited to be part of this journey with them, and help fuel the next chapter of their success.' The Castle Lager Pirates Grand Challenge, a fixture that consistently brings passion and intensity to the local rugby scene, commenced on March 29. With WeBuyCars supporting them, the Pirates stepped onto the field with renewed energy and ambition. Adding a practical touch to the partnership, WeBuyCars has installed a dedicated service pod at Pirates' Greenside premises. This new feature offers fans and community members convenient access to car valuations and transactions, seamlessly integrating business with sport. Beyond sponsorship, this collaboration signals a commitment to grassroots rugby and community upliftment. With strengthened infrastructure and resources, Pirates Rugby Club looks poised to build on its legacy, while inspiring the next generation of players and supporters alike. Follow us on our Whatsapp channel, Facebook, X, Instagram and TikTok for the latest updates and inspiration! Have a story idea? We'd love to hear from you – join our WhatsApp group and share your thoughts! Related article: Parktown Boys rugby prodigy crowned u16 best player of 2024 at Pirates Rugby Club At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
