WeBuyCars Shares Fall as Chinese Cars Compete
The JSE-listed used-car retailer's share price is down 42.79% this year as cheap new Chinese models draw buyers away from the secondhand market.
Updated on Nov. 3, 2026 in Buying/Selling
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WeBuyCars' share price has fallen 42.79% year-to-date, erasing R8.62 billion in market value. Lower-priced new Chinese vehicles have pulled traditional secondhand car buyers away from the company.
Why it matters
The shift shows new Chinese brands now competing directly with used-car sellers across South Africa, not just in the new-car segment. Lower inflation and interest rates have also made new cars more affordable for buyers.
WeBuyCars' share price is down 42.79% year-to-date, a loss of R8.62 billion from a peak market capitalisation of R24.24 billion at the end of 2025. Chinese cars make up 11% of vehicles bought by South Africans under 35.
The players
WeBuyCars
A South African online used-car retailer listed on the Johannesburg Stock Exchange that buys and sells pre-owned vehicles.
Transaction Capital
A South African specialty finance group that bought a 49.9% stake in WeBuyCars in 2020 and later acquired a further 25%.
Standard Bank
One of South Africa's largest banks, whose data showed financed purchases of Chinese cars by young South Africans grew 423% between 2021 and 2025.
The details
WeBuyCars cut prices and absorbed margin losses to keep sales volumes up. Chinese cars entering the used market have depreciated sharply, forcing owners to hold them longer and keeping secondhand supply low.
Timeline
2020: Transaction Capital acquired a 49.9% stake in WeBuyCars.
End of 2025: WeBuyCars reached its peak market capitalisation of R24.24 billion.
Early 2026: Chinese cars began clearly competing directly with secondhand sellers.
Market Landscape
Standard Bank data shows financed purchases of Chinese cars by South Africans under 35 grew 423% between 2021 and 2025, and those cars now make up 11% of their purchases. WeBuyCars says the rise of Chinese cars in the secondhand market will become a long-term growth driver, though it does not resolve the margin pressure it currently faces.
Buyers weighing a used car now face new Chinese models priced to compete with secondhand stock, which may affect the prices they pay and sell for. Chinese cars that depreciate quickly also mean sellers may hold on to vehicles longer than planned.
The takeaway
Buyers comparing new and used cars should check current prices on both, since cheaper new Chinese models are narrowing the gap. Sellers should factor in how quickly Chinese models lose value before setting a price.
Further reading
For broader context on how buyers are choosing between new and pre-owned vehicles, see Buying/Selling coverage.
Source note: This article includes information reported by Dailyinvestor.
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