Weelee, historically South Africa’s fastest-growing online platform and now an established buying and selling business within the pre-owned motor industry, believes that strong competition within the used car market will be the catalyst for innovative solutions, competitive pricing, and enhanced customer service.
“In a rapidly evolving economic climate marked by high interest rates, escalating fuel costs, and frequent power outages, consumer preferences have shifted. Prospective car buyers are now prioritizing value for money and convenience. Meanwhile, sellers are competing to access quality stock in the current high-demand landscape and to provide a genuine value retail offering to customers,” said Weelee CEO, Errol Levin.
As reported by credit bureau TransUnion, the combination of rising car prices and diminishing disposable income has led car owners to keep their vehicles for longer periods, resulting in a scarcity of high-quality pre-owned cars. This supply-demand imbalance has consequently driven used vehicle prices significantly above inflation rates, with three-year-old vehicles experiencing the most substantial price hikes.
Despite these challenges, digital marketplaces and vehicle bidding platforms are fundamentally transforming the dynamics of interactions between buyers and sellers within the pre-owned car market.
Levin underscored the recognition by forward-thinking large-scale car traders of the potential to deliver a hybrid solution that addresses the requirements of both buyers and sellers. Weelee, as an example, provides consumers with hybrid selling options through its online bidding platform or direct purchasing with immediate payment.
Potential buyers are experiencing the advantages of this business model by gaining the ability to acquire vehicles at wholesale prices or at rates comparable to those typically paid by dealers. Since introducing their retail option in 2023, Weelee has successfully facilitated the sale of more than 10,000 vehicles to South Africans, offering prices below the conventional retail rates.
In a noteworthy milestone, Weelee has helped over 100,000 South Africans sell their vehicles through its platform.
In a strategic move poised to reshape the landscape of the pre-owned car sector, Weelee will inaugurate a sprawling 40,000-square-meter Mega Warehouse in Midstream, Centurion, situated conveniently off the N1 highway on November 1st.
“Purchasing a pre-owned vehicle is often a deeply personal decision, and customers appreciate the opportunity to come to a place where service is a key differentiator. Customers need transparency regarding the history of the vehicle and the ability to make an educated choice from a variety of options.
“Our Mega Warehouse, featuring over 1,000 vehicles on display at any given time, gives customers some creature comforts such as Plato coffee shop and a relaxed, welcoming environment but also offers a variety of finance options and expert advice.
“At our Megastore they can simply sell their car, buy a car, or even trade their car. It’s a one-stop shop,” Levin added.
By consolidating its resources in a singular location through the Mega Warehouse, Weelee achieves operational efficiencies and opens doors for expansion. The Mega Warehouse seamlessly incorporates value-added services like wheel alignment, tire services, and aftermarket product fitment, elevating the overall customer experience.