WeBuyCars Trades Up: Strong Financials Fuel Investor Confidence

WeBuyCars Holdings Ltd (JSE: WBC) has defied the odds, navigating through a challenging economic landscape to deliver impressive results for the six months ending March 31st, 2024. Despite facing headwinds from high interest rates and escalating fuel costs, the company showcased resilience with a remarkable surge in unit sales by 13.4% to 80,538, propelling revenue to a notable 15.9% increase to R11.4 billion. This stellar performance translated into a substantial 26.6% boost in core headline earnings, reaching R402 million. 

However, amidst these triumphs, WeBuyCars remains cautiously mindful of looming macroeconomic challenges. The economic environment, characterized by lower consumer confidence and soaring interest rates at a 15-year high, threatens to dampen new vehicle sales volumes, potentially impacting WeBuyCars’ business outlook. Despite this backdrop, the company’s share price has seen an impressive 10% gain since its listing on the Johannesburg Stock Exchange in April, attracting keen investor interest. 

Source: Trive – Koyfin, Nkosilathi Dube 

As a leader in the second-hand vehicle industry, WeBuyCars holds a coveted position in the market, drawing investors eager to capitalize on its success. Yet, amidst these accolades lies a looming threat: the persistent strain of rising interest rates on consumer spending patterns. The question remains: will WeBuyCars successfully navigate through these challenges and sustain its impressive growth trajectory? 


WeBuyCars‘ price action tells a story of resilience and investor enthusiasm. Initially facing downward pressure post-IPO, the stock dipped below its IPO price to R18.95 per share. However, this level quickly transformed into a robust support zone as eager buyers stepped in. Buoyed by an uptick in buying volumes, the stock rallied, surpassing its IPO price and is trading above the 10-day moving average, indicating a short-term uptrend. 

Despite encountering resistance at R22.00 per share, sparked by bearish pressures which led to back-to-back days of losses, upbeat half-year results reignited investor interest. Buyers flooded the market, driving demand higher for WeBuyCars stocks. This surge in demand propelled the stock’s upward trajectory, showcasing the power of market sentiment. 

Looking ahead, if upside momentum persists, attention may turn to the 61.80% Fibonacci Extension Golden Ratio as a potential target for further gains. This dynamic interplay between technical levels and market sentiment underscores the evolving nature of WeBuyCars’ price action as investors navigate opportunities in the stock market. 


WeBuyCars has showcased remarkable resilience and adaptability in the face of challenging macroeconomic conditions, as evidenced by its stellar half-year performance. Despite the backdrop of stubbornly high inflation and interest rates, which have significantly constrained consumers’ disposable income, WeBuyCars managed to achieve record-breaking sales figures in March 2024. 

The latest data from the Automotive Business Council (Naamsa) paints a sobering picture of the vehicle sales landscape in South Africa. New vehicle sales plummeted by 11.7% in March compared to the previous year, with year-to-date sales also registering a 5.3% decline. The aggressive monetary policy stance of the South African Reserve Bank (SARB), characterized by consecutive interest rate hikes, has contributed to this downturn. With interest rates at a 15-year high, consumers face increased financial strain, exacerbated by rising fuel prices. 

Source: Trive – Koyfin, Nkosilathi Dube 

WeBuyCars’ performance stands out as a beacon of success in this challenging environment. March 2024 witnessed a record-breaking sales month for the company, with 14,285 units sold. Financially, WeBuyCars has demonstrated robust performance, generating a significant cash flow from operations with a notable 96.6% year-on-year increase to R267 million. This financial strength enabled the company to distribute dividends totalling a substantial R3.41 billion during the year’s first half, underscoring its solid financial position. This remarkable achievement can be attributed to a combination of factors. Higher volumes, rising average selling prices, and improved margins have all played pivotal roles in driving earnings growth. Furthermore, operational efficiencies, including faster inventory turnover and economies of scale, have bolstered profitability. 

Despite its impressive performance, WeBuyCars remains cautious about the future. The tough economic environment, characterized by lower consumer confidence and steep interest rates, poses significant challenges. With WeBuyCars holding a substantial 32% market share in vehicle sales in March, its cautious outlook reflects the broader sentiment within the industry. 

Source: Trive – Koyfin, Nkosilathi Dube 


In conclusion, WeBuyCars’ half-year performance is a testament to its resilience and strategic agility in navigating challenging economic conditions. While macroeconomic headwinds persist, WeBuyCars’ strong market position, financial robustness, and operational efficiency position it well to weather the storm and capitalize on opportunities in the dynamic automotive industry landscape. 

Sources: WeBuyCars Holdings Ltd, The Automotive Business Council, Reuters, Trading Economics, TradingView, Koyfin 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst 

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