WeBuyCars agrees to pay R2.5m fine and R3.4m in ‘consumer redress’

JSE-listed used vehicle buyer and seller WeBuyCars (WBC) has agreed to pay a R2.5 million fine and R3.4 million in “consumer redress” in terms of a settlement agreement it entered with the National Consumer Commission (NCC).

The consumer redress relates to WeBuyCars agreeing to refund 31 affected consumers a total of R3 419 971.83.

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To strengthen consumer protection and enhance service delivery, WeBuyCars has also agreed in terms of the settlement agreement to:

• Revise its terms and conditions to align with the Consumer Protection Act (CPA);
• Commit to a Consumer Awareness Programme to improve consumer education concerning the purchasing of pre-owned motor vehicles, consumers’ rights and obligations, as well as the supplier’s rights and obligations under the CPA; and
• Create 300 job opportunities at various levels across WeBuyCars over a five-year period, over and above the current planned employment opportunities, to enhance customer service capacity and the overall consumer experience.

The settlement agreement follows the NCC receiving complaints from consumers in the past three years that WeBuyCars had failed to provide remedies to consumers based on sale agreements signed between the company and its customers.

The NCC said on Tuesday it had formed a reasonable suspicion that WeBuyCars’s terms and conditions, particularly in relation to warranties and terms of sale, contravened several provisions of the CPA.

The NCC investigated the complaints lodged by consumers, and found that the terms and conditions of the sale agreements did indeed contravene the CPA.

It said the settlement agreement was referred by the NCC to the National Consumer Tribunal on 3 December and confirmed by the tribunal on Friday, making it a consent order in terms of the National Consumer Act.

Attempts to obtain comment about the settlement agreement from WeBuyCars on Tuesday were unsuccessful.

Investigation findings

Acting NCC Commissioner Hardin Ratshisusu on Tuesday welcomed the consent order granted by the tribunal, saying the settlement “concludes investigations against WeBuyCars on contraventions of the CPA”.

“WeBuyCars, among other commitments, has agreed to review and amend terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected.

“Consumers that were affected by the conduct will, as part of this settlement, receive redress,” he said.

Moneyweb reported in January on comments made by journalist Jonathan Witt of Overton Press about his experience with WeBuyCars, particularly the danger of prospective used vehicle buyers relying on so-called independent vehicle assessment reports compiled by Dekra Automotive when considering purchasing vehicles from WeBuyCars and other used vehicle dealers.

Witt said the Dekra reports claimed that both vehicles he was interested in were in “good” or “very good” condition, with no evidence of damage, faults or repairs, and both were categorised as being in ‘Platinum’ condition.

He took down the VIN numbers, did some follow up, and confirmed that both vehicles had been involved in accidents.

“One of them had no less than 3 accidents and the other was considered uneconomical to repair after a major accident, and has therefore been rebuilt,” he said.

“There was no disclosure of any of this and the argument could be made that such information has been intentionally hidden and the vehicles misrepresented.”

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There was an unprecedented response from consumers to Moneyweb’s article, with the majority highlighting the Dekra inspection reports as a problem.

Moneyweb still receives regular complaints from consumers about vehicles purchased from WeBuyCars.

Vehicle assessment reports

WeBuyCars responded to Witt’s criticism by stating that the Dekra Used Vehicle Report provides “an independent evaluation of a vehicle’s roadworthiness, focusing on aspects such as brake performance, tyre condition, shock absorbers, and diagnostic error codes”, but is not a full mechanical evaluation and does not determine whether a vehicle has been in an accident.

Dekra Automotive chief operating officer Stefan Bleitner, responding at the time to Witt’s criticism of the Dekra Vehicle Reports, said the company had unfortunately not been given the opportunity to investigate all these reports and assured consumers that “there are no fraudulent reports being provided to WeBuyCars or any other motor vehicle dealer”.

Consumer complaints

The NCC confirmed to Moneyweb in February that it had received and considered 46 complaints in its 2024/25 financial year against WeBuyCars, with consumers making various allegations, but mainly alleging the company had supplied them with defective vehicles.

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The commission said 23 complaints were referred to the Motor Industry Ombudsman of South Africa (Miosa) and the Provincial Consumer Protection Offices.

It said 21 complaints were still under consideration, with at least one focusing on cross-cutting concerns on terms and conditions with respect to the insertion of voetstoots-type provisions in sale contracts.

One complaint led to the initiation of an investigation by the NCC related to worn tyres and involved the use of a vehicle assessment report compiled by Dekra Automotive, but the commission stressed that it was not specifically investigating vehicle assessment reports compiled by Dekra Automotive “but these are considered on a case-by-case basis if linked to a complaint”.

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