WeBuyCars CEO on the outlook for SA’s secondary car market

The demand for used cars in South Africa has surged since the onset of the pandemic, with consumers shifting away from new vehicle purchases. In a notable move last year, the vehicle marketplace WeBuyCars acquired the Ticketpro Dome venue as its new super-showroom home, capable of showcasing over 1,000 vehicles. Discussing this and the latest trends in the used car market is Faan van der Walt, CEO of WeBuyCars. South Africa's car market faced significant challenges due to the pandemic-induced downturn. In 2020, new car sales hit a record low of 380,000, down from 550,000 the previous year. While 2021 showed a slight recovery, with 464,000 new vehicles sold, it still lags by 20% compared to pre-pandemic levels. On the other hand, the used vehicle registrations saw a different trend, with over 1.5 million used vehicles registered in the past year, similar to pre-pandemic levels. The combination of new and used vehicle trades in 2021 marked the highest volume in four years. Consumers opted for used cars due to affordability and various supply chain issues, making new vehicles scarce. Despite the shift towards used cars, prices have surged by 25-30%, mirroring a global trend seen in markets like the United States, where prices have risen by up to 40%. However, van der Walt predicts this trend will level out in the next year as supply chain challenges ease and new car sales rebound. WeBuyCars' success story is anchored in its unique business model—serving the entire market rather than a specific segment. With around 11 million vehicles on South Africa's roads, WeBuyCars offers fair prices to motorists looking to sell their cars, providing an unparalleled service regardless of location. The company utilizes various sales channels, including auctions, selling to dealers, and retailing directly to customers, ensuring a seamless process for all clients. The CEO's journey from being a teacher to building a thriving business underscores WeBuyCars' commitment to client satisfaction. Over the past 21 years, the company has grown organically to sell over 10,000 cars per month and employ 1,600 people. Van der Walt highlights plans to further expand market share in Africa and enhance services. WeBuyCars' ethos of continuous improvement and client-centric approach has resonated well with consumers, driving repeat business and loyalty. The company's omnichannel sales strategy caters to diverse customer preferences—30% of vehicles are sold online, reflecting the evolving nature of car purchasing habits. By offering transparent quality checks and reports on vehicle conditions, WeBuyCars ensures customer confidence in purchasing used cars. The recent acquisition of the Ticketpro Dome in Johannesburg as a showroom underscores WeBuyCars' commitment to innovation in the car-buying experience. The dome, designed in 1998 as a motoring showroom, now fulfills its original purpose, offering a unique one-stop shop for car buyers of all budgets and preferences. With plans for a grand opening to celebrate this milestone, WeBuyCars aims to transform the car-buying journey into an enjoyable and stress-free experience for all clients.