WeBuyCars reported a modest decline in interim earnings for the six months ended 31 March 2026, as aggressive competition from cheaper Asian vehicle brands and a buoyant new car market placed pressure on margins in the used vehicle sector.
The group posted revenue growth of 7.8% to R14.2 billion, supported by higher transaction volumes. Vehicles bought increased 3.2% to 95,328 units, while vehicles sold rose 2.3% to 93,519 units. However, headline earnings slipped 1.6% to R500.1 million, with headline earnings per share declining to 119.7 cents from 121.8 cents previously.
Despite the softer earnings performance, the company declared an interim dividend of 33 cents per share, up 10% from 30 cents a year earlier.
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Tough trading conditions
WeBuyCars said trading conditions remained challenging during the period, contrasting sharply with the stronger market environment experienced in the prior comparable period. The group noted that rapid growth in South Africa’s new vehicle market, particularly from competitively priced Asian brands, significantly altered consumer buying patterns and intensified price competition.
Management said lower-priced new vehicles compressed the traditional pricing advantage of used cars, forcing the group to reduce selling prices on inventory to maintain liquidity and healthy stock turnover.
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Notable milestones
The company nevertheless achieved several operational milestones, including record monthly sales of 17,209 vehicles in March and a buying record of 17,617 vehicles in January.
Expansion also continued at pace, with new supermarkets opened in Pretoria North, Cape Town and Witbank, increasing national parking capacity by 23.6%.
Looking ahead, the group remains confident in its medium- to long-term growth strategy and reiterated its target of buying and selling 23,000 vehicles a month by FY2028, supported by continued geographic expansion and investments in operational technology.
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