We Buy Cars is under fire following a recent settlement agreement with the National Consumer Commission (NCC), which arises from an investigation into complaints lodged by customers over the last three years.
Allegations surfaced that the company neglected to assume responsibility for car issues developing within the first six months post-purchase, leading to significant implications for both the business and affected consumers.
As part of the settlement, We Buy Cars has agreed to pay an administrative penalty of R2.5 million in addition to R3.4 million already disbursed to 31 customers who escalated their grievances to the NCC.
This settlement, now approved by the National Consumer Tribunal, underscores the serious nature of the complaints and highlights the need for regulatory compliance in the consumer services industry.
Following the NCC’s investigation, it was revealed that We Buy Cars’ terms and conditions were not in alignment with the Consumer Protection Act (CPA).
In response, the company defended itself, stating that the cases represented a mere fraction of the total vehicles it sold in 2024—172,320 pre-owned cars, with only 0.36% of customers seeking dispute resolution through various institutions, as reported by Daily Investor.
‘The majority of these matters were resolved amicably or in WeBuyCars’ favour. This record demonstrates that WeBuyCars conducts their business responsibly and in accordance with the CPA,’ the company asserted as per Daily Investor.
The settlement agreement marks a vital turning point for We Buy Cars, allowing the firm to shift its focus towards forward-looking compliance measures and safeguarding consumer interests.
To enhance transparency and consumer protections, it is reported that the company has implemented several operational improvements, including updating its terms and conditions to comply with the CPA and adopt industry-best practices.
It is further reported that as part of its commitment to continuous improvement, the company actively enhances its compliance with the CPA and values the business guidance and interventions provided by the NCC.
The company is also working closely with the Motor Industry Ombud of South Africa, adhering to its rulings and recommendations.
Despite the regulatory challenges, WeBuyCars faces new competitive pressures from affordable Chinese automobile brands that offer compelling vehicles at lower price points. This robust competition has led WeBuyCars to adapt its strategy, adjusting vehicle-selling prices to better align with current market dynamics.
We Buy Cars agrees to R2.5 million fine and R3.4 million in consumer refunds
Leading car dealer We Buy Cars (Pty) Ltd has entered into a landmark settlement agreement after facing numerous complaints regarding defective vehicles sold under unfair terms, reports Cape {town} Etc.
The National Consumer Tribunal (Tribunal) confirmed that WBC will pay a substantial fine of R2.5 million and refund over R3.4 million to affected consumers.
This resolution marks the conclusion of an investigation by the National Consumer Commission (NCC) into allegations of contraventions of the Consumer Protection Act (CPA).
The settlement was announced on Tuesday, with the Tribunal confirming the agreement following constructive negotiations between the NCC and WBC.
On 3 December 2025, the NCC referred the settlement for approval, which was subsequently granted by the Tribunal on 19 December 2025, establishing it as a consent order under Section 74(1) of the CPA.
As part of the settlement terms, We Buy Cars, one of South Africa’s prominent pre-owned vehicle retailers, will:
- Pay an administrative fine of R2,500,000.
- Refund a total of R3,419,971.83 to 31 consumers who reported issues with their purchases.
- Revise its terms and conditions to ensure compliance with the CPA.
- Implement a Consumer Awareness Programme aimed at educating buyers about their rights and obligations during pre-owned vehicle purchases.
- Create 300 new job opportunities over the next five years to improve customer service and enhance the overall consumer experience.
Over the past three years, the NCC had received numerous complaints from consumers expressing discontent over WBC’s failure to address issues related to defective vehicles as stipulated in the signed sale agreements.
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The NCC’s investigations revealed that WBC’s warranty terms and conditions appeared to breach several provisions of the CPA.
Acting Commissioner of the NCC, Hardin Ratshisusu has welcomed the Tribunal’s consent order, stating, ‘This settlement concludes investigations against We Buy Cars on contraventions of the CPA. We Buy Cars, amongst 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,’
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Picture: WeBuyCars / Facebook
