We Buy Cars, one of South Africa’s leading used vehicle retailers, has been hit with a R2.5 million administrative fine and ordered to refund over R3.4 million to affected customers following breaches of consumer protection laws. The penalties stem from a prolonged investigation into the company’s sales practices, highlighting ongoing challenges in the pre-owned automotive sector where buyer complaints about warranties and contract terms remain commonplace.
The settlement, confirmed as a binding consent order by the National Consumer Tribunal on 19 December, requires the company to repay R3,419,971.83 to 31 consumers who raised issues with its warranty provisions and sales agreements. According to Maroela Media, which reported on the agreement, these clauses were found to unduly restrict consumer rights, prompting the three-year probe by regulators.
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In a market valued at approximately USD 12.89 billion in 2025 according to Mordor Intelligence, We Buy Cars holds a significant position with an estimated 10-12% share, as noted in earlier financial analyses. The firm’s recent revenue reached R26.4 billion, underscoring its dominance amid growing competition from affordable new imports, particularly Chinese brands that are pressuring used vehicle prices.
The order also mandates revisions to the company’s terms and conditions to ensure full alignment with consumer legislation, alongside the rollout of an awareness programme educating buyers on their rights when purchasing second-hand vehicles. This comes against a backdrop of increasing scrutiny on the industry, with regulators addressing similar violations elsewhere.
Furthermore, We Buy Cars must create 300 new positions over the next five years to bolster customer service and enhance the overall buying experience. Such measures reflect broader efforts to improve standards in a sector where economic pressures often push consumers towards pre-owned options over costly new models.
The acting commissioner has indicated that this resolution closes the investigation while providing redress and strengthening protections for future transactions. As reported by Moneyweb, the National Consumer Commission has handled dozens of complaints against the retailer in recent periods, illustrating persistent tensions between large-scale operators and individual buyers.
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This case adds to a pattern of enforcement actions in South Africa’s used car landscape, potentially signalling tighter oversight as the market expands at a projected compound annual growth rate of over 7% through 2030, per Mordor Intelligence. For a company of We Buy Cars’ scale, the financial impact appears manageable, but it serves as a reminder of the reputational and operational risks in an increasingly regulated environment.