WeBuyCars’s success story is one of grit, innovation, and an unrelenting focus on doing things right. What started as a small used-car dealership in Pretoria in 2001 has grown into a behemoth that sells over 13,500 cars a month and is set to list on the JSE in 2024. This journey is a testament to the power of vision, hard work, and adaptability.
The Early Days: A Family Affair
WeBuyCars was founded by brothers Faan and Dirk van der Walt, who shared a passion for cars and a knack for spotting a good deal. Their father, a mechanic, instilled in them a deep understanding of vehicles, which became the foundation of their business.
In the early 2000s, Faan and Dirk started small, buying and selling cars from their home. They quickly realized that the key to success was buying cars at the right price. “If you don’t buy it right, it will never work,” Faan often says. This principle became their golden rule and remains at the core of their operations today.
The Turning Point: Scaling Up
The brothers’ big break came when they decided to advertise their business on a billboard along the N1 highway. Holding cash in hand, the billboard became a symbol of trust and reliability, propelling WeBuyCars into the spotlight.
This visibility led to rapid growth. They opened their first “supermarket” in Pretoria, capable of storing 100 vehicles. Within a year, they expanded their capacity to 700 vehicles. By 2014, they had established buying pods in major cities like Cape Town, Durban, and Centurion.
Innovation and Data-Driven Decisions
One of the key drivers of WeBuyCars’s success story has been their ability to adapt to changing times. Early on, they recognized the importance of technology and data. They developed proprietary software to track buyer behavior and optimize pricing. Today, the company processes over 80 GB of data daily, using it to make informed decisions and stay ahead of the competition.
Their chief digital officer, Wynand Beukes, explains, “Data is the backbone of our operations. It allows us to price vehicles accurately, understand market trends, and deliver value to our customers.”
Organic Growth and Reinvestment
Unlike many businesses that rely on external funding, WeBuyCars grew organically. The brothers reinvested every penny of profit back into the business, expanding their footprint, hiring talent, and improving their infrastructure.
Faan and Dirk didn’t even draw salaries during the early years. Their commitment to reinvestment paid off, as the company grew from a two-person operation to a 2,800-employee powerhouse.
Partnership with Transaction Capital
In 2020, Transaction Capital acquired a 49.9% stake in WeBuyCars, valuing the company at R1.8 billion. This partnership provided the resources needed to accelerate growth and explore new opportunities, such as financing and insurance services.
In 2024, Transaction Capital announced plans to unbundle and list WeBuyCars on the JSE. This move marks a new chapter in WeBuyCars’s success story, positioning the company for even greater achievements.
The Future: Doubling Market Share
Looking ahead, WeBuyCars aims to double its market share in the next five years. They plan to expand their physical footprint, with buying pods in every town and at least one within 10 km of every major city.
Faan van der Walt remains optimistic about the future. “We’ve come a long way, but there’s still so much more we can achieve. Our focus is on delivering value to our customers and staying true to the principles that got us here.”
Lessons from WeBuyCars’s Success Story
- Start Small, Think Big: Faan and Dirk began with a single car and a dream. Their willingness to take risks and think big set the stage for their success.
- Focus on Core Principles: Buying cars at the right price and reinvesting profits were non-negotiables that fueled their growth.
- Embrace Technology: Leveraging data and digital tools allowed them to scale efficiently and stay competitive.
- Build a Strong Team: Hiring like-minded individuals and empowering them to take ownership was crucial to their expansion.
- Stay Adaptable: The ability to pivot and embrace new opportunities ensured their long-term success.
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Conclusion
WeBuyCars’s success story is a shining example of what can be achieved with passion, perseverance, and a clear vision. From a small dealership to a JSE-listed giant, their journey inspires entrepreneurs and business leaders alike. As they continue to innovate and expand, WeBuyCars remains a testament to the power of doing things right—one car at a time.
WeBuyCars’s success story is far from over. With their eyes set on the future, the company is poised to redefine the used-car industry and create even greater value for its customers and stakeholders.
Timeline: WeBuyCars’s Success Story
1980 – 1992: How It Began
- Faan and Dirk van der Walt grew up in Bronkhorstspruit, where they learned to fix cars from their father, Koos.
- 1988: Faan bought his first bike, a Yamaha XT500, for R400.
- He discovered his passion for buying, improving, and selling vehicles.
1992 – 2001: Life & Experience
- 1992 – 1993: Faan studied to become a teacher and bought his first car, a blue Volkswagen 412.
- 1998: Faan got married to Tanja, and they moved to the UK to teach, saving money for future investments.
- Dirk studied marketing, which later proved valuable.
- 2001: Faan & Dirk established WeBuyCars.
2001 – 2010: The Grinding Years
- They handled everything themselves, learning the car industry and business.
- Growth was slow but steady.
- 2010: The WeBuyCars team expanded.
2010 – 2012
- The first official WeBuyCars premises opened in Pretoria East.
- They used newspaper advertising to grow.
2016 – 2018: Bigger & Better
- 2016: WeBuyCars opened its Cape Town branch.
- 2017:
- The Car Supermarket in Midstream was launched, Africa’s biggest car showroom.
- Dirk and Faan sold a minority share in WeBuyCars to Fledge Capital.
- 2018:
- A second warehouse opened in Cape Town.
- Auctions at Midstream were made public.
- First WeBuyCars warehouse in Gauteng (Aeroton, JHB South) was opened.
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