Says it does not feel threatened by strong new vehicle sales, particularly of cheaper Chinese models
JSE-listed used vehicle buyer and seller WeBuyCars has decided against selling new cars and has welcomed the strong growth in new vehicle sales driven largely by cheaper Chinese vehicle brands.
WeBuyCars chief marketing officer Rikus Blomerus tells Moneyweb the sale of new cars is not a direction the company is going in at this stage.
“We still have to grow a lot more in the used market and focus on a lot of things in our current business operations – getting better and striving to be the best and so forth – before we pursue that,” says Blomerus.
“Maybe for the long term it might be on the cards but it’s not something that we are actively pursuing and strategising on at this stage.”
Blomerus’s comments follow Moneyweb exclusively reporting in June last year that WeBuyCars confirmed it had been approached by some original equipment manufacturers (OEMs) about the possibility of it also selling new cars.
Blomerus said at the time there is only a small overlap of about 20% to 25% of people who sell their current vehicle to WeBuyCars and buy their next vehicle from the company, adding that about 30% of those “who sell their vehicle to us buy a brand new vehicle, which we do not offer at this stage”.
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The company has declined to name the vehicle brands that approached it about possibly selling their new vehicle models.
Blomerus says this is an interesting time for OEMs, particularly as new vehicle sales have been so strong, but notes that the bulk have been cheaper-priced vehicles, currently dominated by Chinese importers.
“If you look at the stats, it’s scary how new car sales have grown year-on-year,” he says.
Market recovery
South Africa’s new vehicle market in 2025 finally recovered to above 2019 pre-Covid-19 pandemic levels to hit sales highs not seen in a decade.
Total new vehicle sales grew by 15.7% in the year to 596 818 units, driven by a 20.1% increase in new car sales to 422 292 units and a 7.8% rise in light commercial vehicle sales to 143 637 units.
Automotive business council Naamsa attributes the strong growth in new vehicle sales to broader economic improvements, the 150 basis points reduction in interest rates since September 2024, record-low vehicle price inflation of 1.5%, an influx of affordable model imports and the liquidity injection from “two-pot” retirement system withdrawals.
Market perspective
WesBank said last month almost half of all pre-owned purchases are now financed, with an average ticket size of R396 000, with head of marketing and communications Lebogang Gaoaketse pointing out that the used car market does not operate in isolation from new vehicle sales.
“When new car sales grow, as they did dramatically in 2025, reaching 596 818 units, the highest since 2015, it creates a ripple effect that can positively affect the used vehicle market.”
More new cars eventually means more trade-ins, which should increase used car supply and moderate prices.
He adds that consumers are keeping their vehicles longer, six to eight years on average, which limits the availability of low-mileage, well-maintained cars in popular segments.
‘Not threatened’
WeBuyCars is not threatened by the strong new vehicle sales, particularly of cheaper Chinese models, which might be more attractive to consumers than a used vehicle.
Strong new vehicle sales are not necessarily a bad thing for the used car market, says Blomerus, as it means new used-vehicle stock will be coming into circulation and WeBuyCars might get the opportunity to see these sales eventually reflected in its sales numbers.
“Normally the one follows the other. If the new market does well, a year or two later the used vehicle market does well,” says Blomerus.
“We depend on new vehicle sales to get new used-vehicle stock. It’s very positive for our long term aspirations and goals.”
Nor is Blomerus is concerned about the competitive and cheaper-priced Chinese and Indians brands being sold locally because they cater to different types of customers.
WeBuyCars has seen that people hold onto their Chinese vehicles for a much shorter period while those who buy a German vehicle brand stick to a German brand and know that these models are at a different price point and that they are almost getting a different product.
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Blomerus says data collected by WeBuyCars shows that consumers hold onto their Chinese vehicles for shorter periods because these brands are not as fuel efficient and there are complaints about road noise.
“I don’t want to generalise because there are Chinese vehicle brands that are very good, but most of them are heavier on fuel than anticipated… consumers might pay a lower instalment for a Chinese brand but might end up spending more on fuel, which is not positive. If you look at the overall cost of motoring, it might still be worthwhile buying something that is very light on fuel.”
He says “there are also complaints about road noise in some models when travelling at higher speeds on highways, which is not ideal”.
That said, Chinese vehicle models are now entering the used vehicle market, which will “unlock a whole different market” of consumers looking for a Chinese used vehicle and also for consumers who are looking for a more depreciated vehicle.
“They have a use for it, want to buy it and know the pros and cons of the vehicle but are really looking for something affordable.”
This article was republished from Moneyweb. Read the original here.