12,000 parking bays for used cars in South Africa

Vehicle trading group WeBuyCars has recorded a significant swing in headline earnings for the six months ended March 2025, adding almost 1,400 more parking bays for buying and selling cars.

The group reported headline earnings of R508.2 million for the interim period, up from a loss of R69.5 million in 2024.

Revenue was up 15.2% to R13.13 billion, with buying and selling volumes also increasing around the same measures.

Buying volumes were up 12.9% at 92,339 units, versus 81,785 in 2024, while the group sold 91,392 units, up 13.5% from the 80,538 sold last year.

The number of vehicles bought and sold continued to grow, with sales volumes surpassing 15,000 units in four of the last six months and reaching an all-time monthly record for WeBuyCars of 16,294 units in November 2024, it said.

The group has also continued to expand its operations and spaces for sales, increasing its total parking bay stock to 11,902 (up 13.3% from 10,509 in 2024).

It also added two more vehicle ‘supermarkets’, taking it up to 17 across the country. A crucial part of its strategy is rolling out smaller ‘buying pods’ for purchases and sales. It increased its rollout to 93 pods.

WeBuyCars declared an interim cash dividend of 30 cents per ordinary share, calculated at 25% of headline earnings for the six months.

In its business review, the group said that it experienced buoyant pre-owned vehicle trading conditions in the first four months of the interim period.

This was driven by positivity around the favourable election outcome and the formation of a Government of National Unity (GNU), lower inflation levels, and three consecutive 25 basis point repo rate cuts since September 2024.

This contributed to growing consumer confidence, which was supplemented by an injection of cash into the economy from the two-pot retirement system.

However, positivity waned in February and March 2025 with consumers adopting a “wait and see” attitude after experiencing increased uncertainties on numerous fronts.

This included growing concerns around the cohesive working of the GNU, possible increases to the VAT rate, concerns following the South African Budget speeches and uncertainties relating to US trade tariffs.

Since the end of the reporting period, some uncertainties have dissipated, while others linger. WeBuyCars said it remains “cautiously optimistic,” however.

“The evolving political landscape in South Africa, shaped by the GNU, may introduce short-term complexity, but it also presents an opportunity for renewed focus on stability and growth,” it said.

“Globally, policy shifts such as changes to US trade tariffs have created uncertainty, but WeBuyCars is well placed to navigate these uncertainties through innovation and advanced real-time data analytics.”

It noted that in the first few months of the 2025 calendar year, the motor industry has seen an uptick in new vehicle sales, signalling an improvement in consumer confidence and a resilient appetite for mobility despite broader economic pressures.

It added that the lower interest rate environment in South Africa should also positively impact sales volumes, particularly in the finance sales channel.

The group said that it plans to continue expanding its operations across the country responsibly.

WeBuyCars Interim Results

The loss in the previous year was due to once-off fees related to the group’s JSE listing of R45 million, as well as another once-off fair value loss of R426 million related to call options on the group founders’ 25.1% shareholding.