{"id":23322,"date":"2026-02-04T17:59:21","date_gmt":"2026-02-04T15:59:21","guid":{"rendered":"http:\/\/jhb-webdevelopers\/channelafrica\/news\/webuycars-founders-sell-54-3-million-in-shares-as-market-reacts-sharply\/"},"modified":"2026-02-27T16:34:08","modified_gmt":"2026-02-27T14:34:08","slug":"webuycars-founders-sell-54-3-million-in-shares-as-market-reacts-sharply","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/webuycars-founders-sell-54-3-million-in-shares-as-market-reacts-sharply\/","title":{"rendered":"WeBuyCars founders sell $54.3 million in shares as market reacts sharply"},"content":{"rendered":"

The brothers <\/span>said<\/span> the disposal was part of personal investment diversification and <\/span>estate\u2011planning<\/span> strategies.<\/span> The move comes after a period of extraordinary <\/span>share\u2011price<\/span> growth for the company, which has expanded rapidly since its founding in 2001 into a nationwide network of around 18 vehicle supermarkets and more than 100 buying pods, trading over <\/span>15 000<\/span> cars per month.<\/span><\/p>\n

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Speaking to Channel Africa on Wednesday, Rand Swiss portfolio manager Viv Govender noted that the founders sold at a time when the stock had enjoyed a dramatic rise.<\/span><\/p>\n

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\u201cIn April 2024, the share price was around $1.24. Today it\u2019s about $2.61, and at its peak it was close to $3.73,\u201d Govender said. \u201cWhen you\u2019ve seen that kind of movement, and you hold a large portion of shares, it\u2019s often prudent to sell some for diversification.\u201d<\/span><\/p>\n

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However, he cautioned that insider sales can unsettle investors, particularly when negative market news is circulating. \u201cWe\u2019ve had reports of pressure from Chinese automotive producers,\u201d he said. \u201cYou never want to see insiders selling just before potential bad news.\u201d<\/span><\/p>\n

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Govender added that although the founders no longer hold a controlling stake, their shareholding remains \u201cdisproportionately large\u201d and <\/span>still influences<\/span> the company.<\/span><\/p>\n

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The market did not take the sale lightly. In the seven trading days following the announcement, WeBuyCars\u2019 share price fell 16.75%. <\/span>Over the past month, it <\/span>is<\/span> down<\/span> 10%, and <\/span>from<\/span> its <\/span>mid\u2011January<\/span> high, it has fallen by <\/span>around<\/span> 20%.<\/span><\/p>\n

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\u201cShareholders are not looking at this favourably,\u201d Govender said. \u201cWhen insiders sell, they typically know more than public investors, so it\u2019s rarely a good sign.\u201d<\/span><\/p>\n

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Year\u2011on\u2011year, the share price remains slightly higher, \u201cless than 1% up,\u201d according to Govender, but it has retreated significantly from last year\u2019s peak levels.<\/span><\/p>\n

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Govender said WeBuyCars is also facing structural pressure from the surge in new, aggressively priced vehicles from Chinese manufacturers such as Omoda, Chery, JAC and Haval.<\/span><\/p>\n

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\u201cThese brands have exploded in SA,\u201d he said. \u201cThey\u2019re offering new cars with more features at prices that sometimes match or undercut used cars from traditional brands.\u201d<\/span><\/p>\n

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This dynamic weakens demand for second\u2011hand vehicles, squeezing margins for companies like WeBuyCars.<\/span><\/p>\n

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Asked whether the company\u2019s recent challenges could signal a wider trend for the second\u2011hand automotive sector, Govender said the landscape is evolving.<\/span><\/p>\n

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\u201cSA has historically had a very strong used\u2011car market because our economy is weak and people can\u2019t afford new cars,\u201d he said. \u201cBut if the economy picks up, cheaper new vehicles, especially from China, could draw buyers away from used models.\u201d<\/span><\/p>\n

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He added that the arrival of electric vehicles (EVs) could further disrupt the <\/span>second\u2011hand<\/span> market, as battery degradation makes EV resale values behave <\/span>very<\/span> differently from traditional internal combustion engines.<\/span><\/p>\n

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Govender emphasised that while SA\u2019s second\u2011hand market remains large, several forces could reshape it:<\/span><\/p>\n