Chinese car brands are rapidly capturing market share, and their rise is directly influencing the performance of companies built around the used-car economy including We Buy Cars.
New-Car Prices Now Compete With Used-Car Deals
For years, the used-car market held a strong position because it offered value and lower prices but chinese manufacturers have disrupted this balance. Brands such as Chery, Haval, BAIC, GWM and Jetour now offer new vehicles at prices that compete directly with popular second-hand models. Buyers who once walked into dealerships looking for a pre-owned Polo or i20 at R220,000 to R250,000 now find themselves comparing those prices to brand-new SUVs with full warranties, advanced infotainment, better safety features and modern styling. This comparison is shifting buying behaviour.
“These brands have captured notable market share through attractive pricing and compelling new-vehicle offerings,” said We Buy Cars.
Consumers Are Choosing New Over Used
South Africans are more price-sensitive than ever. They want value, quality, and reliability at the lowest possible cost.
Chinese brands deliver competitive pricing, long warranty periods, affordable servicing, technology-rich interiors and strong market presence and brand visibility. As a result, second-hand cars are losing their competitive edge.
The Impact on We Buy Cars
Lower demand for used vehicles means used-car platforms face slower turnover and tighter margins. Cars stay on the floor longer. Buyers negotiate harder. And the business model becomes more challenging to sustain in an environment where new models are surprisingly affordable.
We Buy Cars’ weaker performance is not an isolated issue. It reflects a wider industry shift where new entrants, mainly chinese brands are redefining what South Africans consider “value”.
A Market in Transition
Chinese automakers are no longer fringe players. They are influencing pricing, competition, and consumer expectations. Their growth is reshaping the broader auto ecosystem, from dealerships to second-hand platforms.
If the trend continues, the used-car market will need to evolve, offering more competitive pricing, improved customer experience, and new value propositions.
