Paypal for a car?
 

I am selling my formula ford to a fellow who wants to pay by paypal. Is this a problem for me? its thousands of dollars. How can I get the money out of paypal?
Will I have to pay paypal a fee to get my money out?

You will be charged a fee just as if you were a credit card merchant. There isn't any cost to get your money from PP, but there may be a monthly restriction on how much you can transfer to your listed bank account.

Do you have a paypal account? If you're paypal account is particularly new, and not directly linked to your checking account they have/had a $500 monthly limit on withdraws. I had that removed from my account a few years ago, but I don't recall how. Something worth investigating.

You will pay a fee of 2.9% plus $.30.

https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=FAQ690&m=HTQ


Its 2.9% to receive the money, but free to transfer back to your linked account.

Sometimes paypal transfers into your account take forever for some reason, I sold my SLC on eBay and I didn't have my listing set up right and the guy paid in full on PayPal and it sucked and for some reason it took like 10 days for the money to clear back into my checking account.

I personally would not do it. No reason he can't just give you a cashiers check, or cash.

You may remind him buyer protection does not apply to cars, and used cars, especially used race cars are always sold as-is, no warranties, stated nor implied. No need for you to pay 2.9% for his peace of mind, that actually does not apply.

No way on Gods green earth would I take PayPal for a vehicle or anything that I can't afford to lose the money on.

The way I understand it, people use PayPal as a sort of "buyer protection" plan. They buy the car, transfer the money and then come pick it up and take it home. After they get miles away from you, they find something they don't like and dispute the payment, tying the money up and preventing you from accessing it.

This can go on for months and meanwhile, they have your car. I may be wrong about this but I'm old fashioned: bring cash, take car home after you look it over. You have the option to back out after seeing the car in person with no penalty.

Again, I may be wrong but even though buyer protection doesn't extend toward used vehicles, they may still be able to tie up your money.

Another edit: I believe that if you instruct the buyer to "transfer money to a friend or family member" no fees apply and it also restricts their ability to screw up the transaction after the fact.

X2.

I would accept a non refundable deposit through paypal since its immediate, but balance should be cash or bank check

x3 KarTek

This is from PayPal's site

https://www.paypal.com/webapps/mpp/paypal-safety-and-security

However I totally agree with you, based on my dealings with paypal even in the claimants situation is blatantly not covered, they will still seize the sellers account while they do their "diligence" which is an epic pain in the ass.

This in and of itself is reason enough to stay away.

OK, thanks guys! I'll ask for cash.

I bought my Ducati via PayPal.

Did the complete deal over the phone, and used PayPal to pay for it.

The safest way to be paid for a car is a bank wire transfer. The buyers bank will charge the buyer around $35 for the transfer. Normally takes 3-4 hours to complete. The seller is able to confirm with their bank that the money is secure in their account before the car is released or the title is signed over. Paypal is OK for a small deposit but even then a bank wire transfer is good for the deposit also. Remember there are a lot of fake cashiers checks out there.

I had a guy get really offended when I called to verify a cashiers check he handed me. He told me cashier checks were very safe. I asked if he had a laser printer at home... He replied "ye... oh.... okay I see what you mean." It ended up being good, as I expected, but you've got to check. My father is a car dealer and has been handed his fair share of home made ones.

Cash and
 

Accept Cash and have your pistol tucked in your back.
OR

Accept Cash and go to one of those Quick Market Gas Pump places that has LOTS of cameras.

Safest (and cheapest) way ris to meet at a bank and exchange cash for title. Banks also generally have a notary on hand if the title needs to be notarized.

I did buy a car once via paypal but it was from a friend (and forum member) and IIRC there were a few small fees involved. I paid a bit extra to cover those fees but the rewards on the credit card more than made up the difference.

I'd say cash only with you giving him a bill of sale. Does this guy have any racing history you can check on?

Other option is to claim it as a personal payment, no fee if paid from his bank account. There will also be no item tied to the transaction, so it would be virtually impossible for him to dispute it. Yeah, it's shorting Paypal their 2.9% mordida, but don't feel terrible about it.

Ive bought with wire transfers a number of times. I seem to remember a somewhat messy transaction regarding a vehicle which the buyer saw in person. Wouldn't want that kind of thing taking place with Paypal involved.

Without reading any of the comments, here is my take:

There is no way I would accept payment for a car through Paypal and would have some serious questions as to why the buyer would want to pay for a vehicle in that manner.

https://www.paypal-community.com/t5/Access-and-security/Advice-about-selling-a-car-recieving-payment-via-paypal/td-p/273176?profile.language=en-gb

I prefer PP for the big ticket items. My LOC is with GE Capitol Com. and my arrangement gives me 60 days before any interest kicks in. Most of the time I can flip the item before assessed any interest.

My buyer is going to wire the money into my account.

Cool!

Thanks guys!

Tom

Got the money now. He'll be here soon to load it up.

End of an era... Glad it's going smoothly.

Did this guy buy sight unseen? I'd be concerned about giving an unknown party my bank acct #.

He bought it the way one does who buys a car away from home. He looked it over well, I took off body panels and such, he read my postings about my recent racing with it and we listened to it run. He is a known entity at apexspeed the open wheel forum. Apparently wiring money is a pretty safe way to send money, I am told.

You do that every time you write a check.

Congrats on the sale. Now time to go spend the money!

I don't know what to do....usually I have the money spent before I get it!

I had only bad experiences with PP, such as holding funds if you didn't have any transactions for 6mo. or longer. Fees, if you are on the receiving end, even though they charge the other party too. Withdrawal limits. Working with IRS and submitting your financial situation unlawfully. The list could go on!
But most importantly, you can lose both, the money and the item. PP is not a bank and their terms and conditions are not in your favor if some dishonest person (mostly outside your country of residence) is pulling back the transfer for some reason or used a heisted account. PP doesn't give a hoot if justified or not!
Plus, something bothersome, to me, they earn the interest for your money if they opt to keep your money frozen for up to 21 days, or more.

This has been an informative thread, thanks guys!

Can you elaborate on that IRS thing?