When South Africa embarked on a hard lockdown in March 2020 to contain the spread of COVID-19, pre-owned car sales platform We Buy Cars South Africa decided to use the opportunity instead of downscaling their business.
And within the two years since the pandemic began, We Buy Cars managed to grow its workforce from 1,000 employees before the start of the pandemic to over 2,000 employees today. That’s how a pre-owned car dealership managed to grow its workforce from 1,000 employees before the start of the pandemic to over 2,000 employees today.
This article delves into how We Buy Cars South Africa achieved this remarkable growth, the challenges they faced, and a review of customer experiences with the company.
Seizing the Opportunity
Rikus Blomerus, general manager for marketing and HR at We Buy Cars, said that when the pandemic began, We Buy Cars didn’t sell a vehicle for 53 days, but its management believed that better days were ahead.
“So there was no income, but we still had our expenses. We were on billboards and radio stations, and we've got these big warehouses, and we had 1000 employees, and it's tough because you still have these expenses,” Rikus said.
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“And I think we said that instead of focusing on maybe retrenching people and letting people go, and so forth, we'd rather said, let's just keep calm, let's see how this plays out. Because normally this opportunity comes after the pandemic."
The massive opportunity arrived, Rikus said, when they were allowed to sell vehicles again.
He said not only were people working from home and therefore willing to sell their vehicles, but consumers could also not travel internationally any longer and suddenly started spending money on cars, camping equipment and motorcycles. At the same time, there were problems importing new vehicles into South Africa, and therefore, people who were looking for a car had to buy a pre-owned vehicle.
‘We saw we were reaping the benefits, we can put our foot back on the pedal and we can move forward and we can grow this company.”
Car sales drop sharply
Hiring the Right People Faster
Rikus said We Buy Cars South Africa's exponential growth meant that the company had to higher better and faster, and started making use of Wamly’s one-way video interview software.
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We Buy Cars’ general manager for marketing and HR said the company started making use of Wamly’s one-way video interview software to hire better and faster. The software allows hundreds of candidates to complete an interview without a hiring manager being present, and the hiring manager reviews it in their own time when most convenient, saving up to 80% of the time spent on a normal interview.
It allows a company to facilitate the entire interview process without being physically present, thereby saving companies time and reducing the need for all panel members to be present simultaneously. A typical one-way video interview lasts between five and 15 minutes, compared to the hour a panel would typically have spent interviewing candidates out of courtesy.
“People who lost their jobs. I'm thinking of a couple of people that we appointed from the tourist industry that's great success stories. Because they could interact well with people,” Rikus said.
“These were appointees where the CV didn’t look well, but once they’ve completed the online interview, they stood out. And before virtual interviews, we might not have even considered them.”
So if one-way video interview software can help We Buy Cars South Africa double their workforce even during one of the largest pandemics of our time, just imagine what it can do for your recruitment process.
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Customer Reviews and Experiences
While WeBuyCars has seen substantial growth, customer reviews present a mixed picture. Here’s a summary of feedback from various platforms:
- Positive Feedback: Some customers have reported excellent service, particularly highlighting helpful and professional staff. For instance, one review praised Ken Maseko for superb service and excellent advice. Another customer lauded Lynton Button from the East London branch for his professionalism and guidance during the purchase process.
- Negative Feedback: Conversely, numerous customers have expressed dissatisfaction. Common issues include cars breaking down shortly after purchase, delays and failures in licensing and registration, and concerns about the accuracy of Dekra reports. Some customers reported poor customer service, with complaints being ignored and difficulties in obtaining refunds for faulty vehicles.
Several reviews mention specific problems:
- One customer was extremely disappointed after buying a car that broke down within four weeks, eventually managing to get a full refund after a long battle.
- Another customer reported buying a car with a warranty, only to face issues with the clutch and gearbox shortly after the warranty period, resulting in out-of-pocket expenses.
- Several reviews highlight issues with vehicles not being roadworthy despite Dekra reports indicating otherwise.
It’s important to note a disclaimer suggesting that some reviews on certain platforms may not pertain to the correct company, specifically mentioning We Buy Cars in California, which buys cars but does not sell them. This highlights the need for careful verification of reviews.
Technological Innovation and Future Growth
Chris Rein and Wynand Beukes have been with WeBuyCars for nearly 7 years, joining when the company had only 1.5 branches. However, using Google Sheets to manage inventory, debtors, and creditors made it almost impossible to scale up the business.
As an already successful and agile business, WeBuyCars needed a system that would work how it required. A standard enterprise ERP system could accommodate neither of these principles.
WeBuyCars owns a unique digital business platform by creating the software it uses. The platform is not licence-based or dollar-hedged; the company owns all the software and all the data it uses. This approach enables WeBuyCars to operationalise its data using AI and machine learning to create accurate projections and lead insight-driven decision-making.
With complete control of its digital business platform, WeBuysCars can explore and measure the success of new features and functionality in an experimental 'sandbox' environment. Successful experiments are then quickly integrated into the system without downtime or business interruptions. This approach has allowed the company to scale efficiently, opening new branches and achieving record-breaking sales figures.
According to Wynand, the most significant opportunity for WeBuyCars is to continue investing in its South African presence, including business properties: "We … feel that we can double the business in the next 5 years."
Chris and Wynand explained that WeBuyCars provides a service in South Africa that involves many consumer-to-consumer transactions across the "full car park." While WeBuyCars buys and sells cars with 10 kilometers on the odometer to 20-year-old cars with 400,000 kilometers, only 7% of its stock is motor vehicles between brand new and 3 years old. From 3 years to 6 years, it's 20%.
WeBuyCars values company culture highly and diligently ensures that new hires fit into its unique business. The story of WeBuyCars is a testament to the power of technology and a strong company culture in driving business growth. By building its digital platform, investing in its people, and maintaining an optimistic outlook, WeBuyCars is positioned for continued success.
With parting words from Wynand: "From a digital perspective, we're just going to keep on doing what we do. Better.
Summary of Key Points
Here’s a table summarizing key aspects of We Buy Cars South Africa:
| Aspect | Details |
|---|---|
| Workforce Growth | Doubled from 1,000 to over 2,000 employees during the pandemic. |
| Recruitment Strategy | Utilized Wamly’s one-way video interview software to hire better and faster. |
| Technological Innovation | Developed a unique digital business platform to manage operations and enable data-driven decision-making. |
| Customer Service | Mixed reviews, with some praising excellent service and others reporting significant issues with vehicle quality and after-sales support. |
| Future Outlook | Plans to continue investing in its South African presence and aims to double the business in the next 5 years. |
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