USED CAR PRICE GROWTH
Two factors drove the growth in used-car prices, creating a market that has outpaced new-car sales and offered real revenue and profit opportunities.
The disruption in new vehicle production during the 2020 pandemic and the global microchip crisis that followed created an undersupply of new vehicles, which, years later, has led to an undersupply of quality used vehicles, too. That has meant price increases in both markets, with used-car prices continually dragged upwards as new-vehicle prices continue to surge, mostly due to additional emission controls and advanced features mandated by law, which significantly add to vehicle costs.
But the WeBuyCars digital mass marketplace model, with slick fulfilment centres and on-site representation from all South Africa ' s major banks, is now facing significant disruption from Chinese new-car dealerships. The economics are simple: Chinese new-vehicle prices are so low that they compete with used-car stock. And South African middle-class buyers who were considering a used car are discovering they can buy a new Chinese model instead.
declining from through Q4 2025 to the end of Q1 2026, WeBuyCars continues to invest. It ' s enhancing its AI capabilities to improve price awareness with data synchronisation. How? By using its enormous volume of transactional pricing and vehicle acquisition validation for the most accurate, market-responsive used car pricing possible.
Seeing an opportunity to capture the geographically underserved central South African market, WeBuyCars is scheduled to open an outlet in Bloemfontein. Recognising the importance of dominating South Africa ' s most important vehicle region( Gauteng), WeBuyCars will also invest in a new outlet site in Centurion.
THE CHINESE OPPORTUNITY
The emerging pressure on the WeBuyCars business from Chinese vehicles could become an opportunity in a few years. But what happens as those Chinese vehicles mature in mileage and become available as used stock? WeBuyCars could be in a position, with its frictionless digital sales system and unrivalled physical outlet network, to capture the potential value of the current new Chinese vehicle fleet, when it becomes valuable used inventory over the next few years.
Inspectify has replaced Dekara Automotive as the inspection entity. Being an inhouse subsidiary, Inspectify allows WeBuyCars to exercise stricter control over its vehicle vetting, with quicker turnarounds, but it ' s also a value data play.
DATA IS INVALUABLE
Inspectify generates a much richer dataset for WeBuyCars, enabling it to understand exactly which mechanical risk trends are present, by model and mileage. This data flows into its AI systems, which process deals and set pricing. With the sheer complexity of makes and models traded in the South African used-car market, data is an advantage for avoiding mispricing and problematic vehicles.
WeBuyCars ' earnings and profitability might be under pressure, but it continues to expand, investing in physical operational assets and, crucially, digital systems, too. The share price decline in 2026 might reflect the emergence of Chinese new-vehicle sales, challenging the profitability of quality used cars. But the investment WeBuyCars has made in derisking its supply with Inspectify is a significant downstream risk mitigation.
CURRENT CHALLENGES
WeBuyCars shares are down by nearly a third year to date, and it ' s clear that the flood of new Chinese models available in South Africa is pressuring the company ' s growth momentum and profitability per unit sold.
The balance between digital platforms and physical spaces has driven WeBuyCars ' s success, and despite headline earnings
WeBuyCars is also investing in advanced digitisation and product vetting, both of which pose real risks for a used-vehicle marketplace of its size and scale. The sheer volume of vehicles that WeBuyCars processes daily( with sales peaking at nearly 500 units a day), makes mechanical validation a real challenge.
What is the upside for WeBuyCars, amongst challenging trading conditions? Its dynamic pricing intelligence, powered by AI agents and an extremely valuable data warehouse, could benefit as the record Chinese new-vehicle sales of 2025 become tradable usedcar inventory by 2030.
MAY 2026 19 WORDS IN ACTION