When the going gets tough, WeBuyCars gets going. Despite a challenging economy marked by low growth, high interest rates, and wary consumers, this phygital used-car retailer has not just survived but thrived. In its first full year as a JSE-listed company, WeBuyCars reported an impressive 16.5% revenue growth, bringing in ZAR23.3 billion ($1.3 billion), and a 23.4% rise in core earnings, reaching ZAR815.4 million.
What’s Driving WeBuyCars’ Success?
- According Tariq Ahmed Saeedi from the AIM Group, WeBuyCars bought 167,741 vehicles (up 17.8% year-on-year) and sold 165,185 (up 16.4%). Higher selling prices and operational efficiencies kept margins stable despite tough trading conditions.
- The company added one retail outlet, bringing the total to 16, and expanded its parking bays by 8.7% to handle more vehicles. Its buying pods, key to sourcing inventory, increased making the process even more accessible.
Challenging the Economy, One Car at a Time
South Africa’s economic conditions in FY2024 weren’t exactly conducive to spending, with high interest rates and low consumer confidence dominating the landscape. Yet, WeBuyCars credits its strategic pricing, customer engagement, and marketing initiatives for not just weathering the storm but gaining market share.
The company’s ability to surpass 14,000 sales in three of the last six months underscores its momentum. And while the numbers are impressive, the scalability of its model and commitment to innovation position it for even greater growth.
Source: AIM Group Industry News
What’s Next for WeBuyCars?
Looking ahead, the company is betting big on expansion according to Moneyweb. Plans are underway for:
- A new outlet in East London for 300 vehicles.
- A Pretoria location to accommodate 1,000 cars.
- A Lansdowne, Cape Town site set to open by October 2025.
- These initiatives align with its goal to double its market share by 2028, fueled by anticipated improvements in interest rates and consumer confidence.
Whether it’s through expanding footprints, optimizing operations, or using data to drive decisions, the company is on a potential trajectory to reshape the used-car industry in the country.
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