I'm selling my Miata and a potential buyer asked if I would take paypal. I've used paypal a number of times, but never to sell a vehicle. Is there anything I should be watch out for, besides having the buyer pay the 3% paypal fee?
thanks
Ron
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Don't release the car until the funds are in your bank. Meaning, once in your paypal account, then transfer to your bank account. Once they are in your bank account, Paypal cannot reclaim them (for whatever reason).
If the funds are in your Paypal account and the transaction is disputed, Paypal can put a hold on the funds and/or reclaim them back for the buyer.
This will prolong the transaction but the only way I would make do a transaction of this magnitude through Paypal. my .02
Not true. Paypal has access to your bank account and can withdraw the money. These are the terms you agreed to when you signed up. Paypal sides with the buyer every time. I'd avoid it. You're paying 3% to have delayed access to your money and put yourself at risk. Does not make sense.
I would steer clear of that transaction if it was me, but if you have to do it, verify the buyer to the Nth degree. Is the car on eBay? Where is the buyer located? Like Ron said, don't ship the car until all funds are in your bank (not your PP account) and then don't ship it anywhere other than his PP verified address.
Your best bet is to just say no.
Troy, you've sold a number of cars. How do did you get paid?
Not true. Paypal has access to your bank account and can withdraw the money. These are the terms you agreed to when you signed up. Paypal sides with the buyer every time. I'd avoid it. You're paying 3% to have delayed access to your money and put yourself at risk. Does not make sense.
This must be new since I last check the terms of use as the last time I disputed a seller they could not do anything more for me because the seller had a zero balance in his paypal account and they said that they could not touch her personal bank account without his consent.
This was a few years back.
With paypal the buyer can submit a claim saying the car wasn't as advertised or something - they could take your money back and you would be without a car and money - This happened to an aquaintance on a boat deal - he took the deposit via paypal - the balance in cash - the buyer then disputed the paypal payment claiming the goods were not as advertised and he lost lost the deposit money - sad deal for sure. Thankfully it was just the deposit and now the whole sale.
My last few higher dollar deals have been via wire transfer - I opened a separate free checking account at the bank just for this activity - Once the funds show up I transfer them to my normal account. Even a bank check can have a stop payment put on it today - just be very careful - If the buyer seems fishy - walk away.
Not worth the hassle should things go south. I've had paypal bag me up on a bad purchase but it was a frustrating experience.
I just bought a van from WV last week and just did the EFT. This didn't cost any additional money (besides $15 for the transaction) and it was instant. Now, this was not purchased from a private seller which made me a little more confident in the whole process. I figured, if they did not send the vehicle I could always fly right up to the dealership and beat the crap out of someone versus the mystery of buying from a private seller. Last time I did use Paypal to buy from a private party I used my AMEX through Paypal so I had the backing of AMEX just in case someone tried to get shady I had them to back me up. Anyways, just my experience. Good luck!
Troy, you've sold a number of cars. How do did you get paid?
Either a cash transaction at a bank if the buyer showed in person, but mostly by wire transfer.
I've had crappy transactions with both Paypal and Ebay. My favourite was when they froze my account saying they suspected fraudulent activity recently (there was no activity for months at the time) and that I had to prove who I was by faxing them two pieces of ID, one of which had to have my photo. Driver's license, passport, birth certificate, etc. I fought this for a long time but they had everything frozen and would not budge on their request. I'd stay away from them for anything but minor purchases now.
