Used-car giant WeBuyCars is ramping up its investment in technology, data-driven pricing systems and digital vehicle inspections as it battles mounting pressure from a flood of cheaper Chinese vehicle brands rapidly reshaping South Africa’s automotive market.
So said WeBuyCars CEO Faan van der Walt, speaking to ITWeb yesterday during a telephonic interview after the company published its interim financial results for the six months ended 31 March.
In response to the Chinese competition, WeBuyCars has accelerated the rollout of its in-house inspection platform, Inspectify, using richer vehicle data and advanced pricing models to sharpen valuations and defend market share in an increasingly competitive environment.
The group says Inspectify has been rolled out across its supermarkets over the past eight months.
The company explains that the platform employs trained technicians, strict quality-control procedures and independently audited processes to improve inspection consistency and vehicle valuation accuracy.
WeBuyCars recently dropped Dekra Automotive, which previously provided independent vehicle inspection and certification reports, in favour of its own newly-established subsidiary, Inspectify.
“Inspectify feeds a richer and more accurate dataset directly into the group’s pricing models, enabling more precise vehicle valuations at the point of purchase, a capability that management believes will meaningfully improve margins over time,” the company says.
The technology-focused operational push also comes as WeBuyCars navigates a difficult trading environment marked by falling used-car prices.
Buying and selling spree
During the interview, Van der Walt said the group’s buying and selling volumes over the past six months show its growth strategy is gaining traction.
“In the past six months, we reached several records in terms of buying and selling of vehicles. It’s a very good indication that we are on the right track.”
He noted that the company has expanded its physical footprint, increasing parking capacity from about 11 900 bays to 50 600 over the past year to accommodate rising volumes.
At the same time, he acknowledged that consumers remain under financial strain compared to the previous reporting period, prompting the company to focus more heavily on technology and data-driven decision-making tools.
“Inspectify is a vehicle inspection report to determine the safety and roadworthiness of a vehicle. Over and above that, what we are trying to do is something far more comprehensive in terms of decision-making for consumers to make the right choice.”
Van der Walt said the company wants to simplify the often-complex financial realities of vehicle ownership for buyers.
“What you need to know before purchasing a vehicle far exceeds the purchase price. You need to understand the reliability of the car, the future value of the vehicle, the running costs for maintenance, fuel, insurance, as well as depreciation.
“So, with Inspectify, we have simplified something that was very complex to make it far easier for the consumer to understand what buying a specific vehicle entails.”
The company is also increasingly embedding artificial intelligence (AI) into its operations and customer tools.
According to Van der Walt, Inspectify now includes an AI-powered chatbot capable of answering highly-personalised consumer questions.
“For example, you can ask a question like driving from this address to that address to go to work every day, how much fuel will I need?”
Behind the scenes, WeBuyCars has been deploying AI agents and advanced analytics to support pricing and operational decisions.
“We have been using AI agents in the background for a while now. We are making use of extremely progressive datasets in the data warehouse and the computing power that goes into our pricing models helps us make the right decisions,” Van der Walt said. He added that the company is using Anthropic’s AI tool Claude to power its AI agents.
Financial performance
Meanwhile, group revenue increased 7.8% to R14.2 billion during the period, while buying and selling volumes rose 3.2% and 2.3%, respectively. However, headline earnings and core headline earnings declined 1.6% to R500.1 million.
The company says the pressure on profitability was partly driven by investment in expansion projects, including new supermarkets and technology systems, as well as margin compression across the used vehicle sector.
WeBuyCars notes that South Africa’s new vehicle market grew 15.7% during the 2025 calendar year, fuelled by competitively-priced Asian brands that are reshaping consumer buying behaviour.
“The current strength of the new vehicle market in South Africa continues to place pressure on margins across the used vehicle sector,” the company says.
To remain competitive, WeBuyCars says it lowered selling prices on some inventory categories, particularly vehicles competing directly with low-cost imported brands.
Despite near-term pressure, management believes the growth of Asian vehicle brands will ultimately benefit the company as more of those vehicles enter the used-car market in coming years.
Alongside its technology investments, WeBuyCars continued expanding its national footprint, opening three new supermarkets in Pretoria North, Cape Town and Witbank during the reporting period.
The company also confirmed plans to open a new facility in Bloemfontein in August and recently signed a lease for a commercial vehicle centre near the R21 highway in Centurion.
In a further strategic move, WeBuyCars acquired a 49% stake in digital auction platform GoBid for R376.8 million. The platform specialises in accident-damaged and non-running vehicles, broadening the group’s digital capabilities across the vehicle resale ecosystem.
The firm says the acquisition strengthens its strategy of ensuring “every vehicle that enters the WeBuyCars ecosystem, regardless of condition, has an optimal route to market”.
The group declared an interim dividend of 33 cents per share, up from 30 cents a year earlier.
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