WeBuyCars reveals how many vehicles it buys versus how many it sells each month

Transaction Capital has published its interim results for the six months ended March 2022, showing the explosive growth of second-hand car retailer, WeBuyCars.

The listed company invests in alternative asset classes including SA Taxi, and has a controlling interest in WeBuyCars.

According to the interim results, WeBuyCars grew headline earnings by 58% to R406 million in HY2022, with the group’s attributable portion increasing 122% to R251 million.

Transaction Capital increased its effective shareholding in WeBuyCars in August 2021 to 74.2% and as a result, now consolidates a greater component of WeBuyCars earnings.

The group said that WeBuyCars achieved its medium-term target of 10,000 vehicles traded per month earlier than anticipated, with vehicles sold up 32% during the reporting period, and vehicles bought up 31%. The group saw vehicle bays up by a similar percentage (34%).

WeBuyCars recorded 7,205 parking bays in 10 vehicle supermarkets, up from 4,738 in HY2021. That number has since grown to 7,835 parking bays in 11 vehicle supermarkets in May 2022.

In the last six months,WeBuyCars opened its largest vehicle supermarket at the Dome in Johannesburg with a capacity of 1,125 bays and has also opened smaller dealerships in Polokwane and Nelspruit with 220 and 370 bays, respectively.

In the next 12 months, it plans to introduce a further three dealerships in various locations in South Africa.

  • Dome branch in Johannesburg opened in December 2022 – 1,125 bays
  • Polokwane branch in Limpopo opened in February 2022 – 220 bays
  • Nelspruit branch in Mpumulanga opened in April 2022 – 370 bays
  • Two branches enhanced during May 2022 – 260 bays

WeBuyCars said that it anticipates 600 additional bays by December 2022.

Vehicles bought per month: +38%

  • 10,000 vehicles bought per month (HY2021: 7,235)
  • 11,000 vehicles bought in February & March 2022

Vehicles sold per month: +41%

  • 9,750 vehicles sold per month (HY2021: 6,925)
  • 11,000 vehicles sold during March 2022
  • 10% of consumer sales are online

 

Looking ahead, WeBuyCars said it has lifted its medium target to 15,000 vehicles traded per month, while the group aims to continue to open dealerships across SA, varying by size, dependent on demand.

It will also be eyeing international expansion following a recent organic expansion in Morocco. Commenting on WeBuyCars’ recent expansion into Morocco, Transaction Capital CEO David Hurwitz, said: “This is the first step in our international expansion aspirations. We will continue to explore further expansion opportunities in select markets

To broaden its mobility offering to private consumers, WeBuyCars launched its principal vehicle finance product during HY2022. This offering combines SA Taxi’s competencies in assessing credit risk and providing vehicle finance, and WeBuyCars’ ability to efficiently underwrite and recover on the value of used vehicles.

Its business-to-consumer (B2C) e-commerce capabilities, which were introduced in 2021, now account for approximately 18% of total online sales, up from circa 8% at the end of the 2021 financial year.

“WeBuyCars is well-positioned to gain market share through its physical and e-commerce platforms by driving a differentiated customer experience enhanced by AI-led pricing, proprietary data sets and other technology advantages”, said Hurwitz. “We expect future earnings from WeBuyCars to continue to grow at similar rates over the medium-term.”


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WeBuyCars reveals how many vehicles it buys versus how many it sells each month