Johannesburg - WeBuyCars experienced a significant drop in share price on Tuesday, with a decline of nearly 14%. This sharp fall followed the release of the company's annual trading statement, which revealed a weaker-than-anticipated performance for the second half of the year, ending September 2025.
Despite projecting core headline earnings between R917 million and R958 million – a 12-17% increase compared to the previous reporting period – investors reacted negatively. Faan van der Walt, founder and executive director of WeBuyCars, acknowledged shareholder expectations were high. "From our side, we feel that our first half was fantastic and the second half of the year was somewhat subdued, softer than expected," he stated.
Consumer Constraints Blamed for Second-Half Dip
Van der Walt attributed the slowdown to consumer constraints. He highlighted a significant drop in finance approval rates, plummeting to as low as 40% from the beginning of the year. "We saw the finance approval rates drop as low as 40% down from the beginning of the year, so there's definitely a slowdown in credit and a wait-and-see attitude," he explained.
What Does This Mean for WeBuyCars?
- Reduced consumer spending is impacting sales.
- Tighter credit conditions are making it harder for consumers to finance vehicle purchases.
- Investor confidence has been shaken by the weaker-than-expected second-half performance.
The company will need to address these challenges to regain investor confidence and navigate the current economic climate effectively. It remains to be seen how WeBuyCars will adapt its strategy to overcome these obstacles and achieve its growth objectives.