We Buy Cars settles complaints, agrees to pay R5.9 million in penalties and consumer redress
We Buy Cars has been fined R2.5 million and ordered to refund more than R3.4 million to 31 consumers after an investigation by the National Consumer Commission found its sales terms contravened consumer protection legislation.
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The National Consumer Tribunal (NCT) has formally validated a significant settlement agreement between the National Consumer Commission (NCC) and We Buy Cars (Pty) Ltd (WBC), following a series of consumer complaints leading to serious investigations over the past three years.
The Tribunal confirmed the settlement on 19 December 2025, ensuring that the terms are now legally binding under the Consumer Protection Act (CPA).
Under the agreed terms, WBC will pay an administrative fine of R2.5 million and provide R3.4 million in refunds to 31 affected consumers.
The settlement reflects the company’s commitment to improving its business practices and protecting consumer rights.
The NCC's decision is a culmination of constructive dialogue aimed at fostering transparency and accountability in auto sales.
Consumers had raised concerns over WBC’s failure to uphold agreements stipulating the terms of sales, particularly regarding warranties and sales conditions.
Upon investigation, the NCC substantiated these complaints and identified significant non-compliance with CPA provisions.
The findings prompted further scrutiny of WBC's practices, ultimately leading to this resolution.
In addition to the financial reparations, WBC has pledged to revise its terms and conditions to fully align with the CPA, ensuring compliance in future dealings.
Furthermore, the company has committed to launching a Consumer Awareness Programme designed to educate South African drivers about their rights when purchasing pre-owned vehicles, alongside suppliers' obligations under the CPA.
As part of its commitment to enhancing service delivery, WBC plans to create 300 jobs across various levels within the company over the next five years.
This initiative aims not only to improve customer service but also to strengthen the overall consumer experience as WBC navigates through this reformed operational strategy.
Acting Commissioner of the NCC, Mr. Hardin Ratshisusu, expressed hope for a brighter consumer future as a result of this settlement.
He emphasised that “this settlement concludes investigations against We Buy Cars on contraventions of the CPA. This is a measure that will ensure consumer rights are fully protected,” adding that affected consumers should receive their due redress through this agreement.
The NCC’s resolution serves as a reminder of the importance of consumer protection in South Africa’s burgeoning automotive market. As We Buy Cars steps forward with renewed commitments, both consumers and the industry will watch closely to ensure lasting compliance and the assurance of their rights.
BUSINESS REPORT