Use PayPal for race car purchase?

[ExKartracer]

Just asking if others have used PayPal for a race car purchase? Car will be picked up by a shipping company but paid for in advance by PayPal. Should I have any concerns? Thanks in advance, John R

[tlracer]

I don't know if PayPal in the US works the same as here in the UK - sellers receive usually pretty immediate notification of payment, but it take a few days for the transaction request to reach the buyer's bank.

My concern would be that the payment would apparently go through then, if the buyer had no funds in their bank to honor the transaction, it could be withdrawn. If the car has been released already then it could be 'no money, no car'.

Who is going to be responsible for any fees - you or the buyer (I'm assuming you are the seller)? Also any currency exchange, if that is relevant?

PayPal fees and rates tend to be worse than, for example, using an FX broker, plus the latter have a much faster link into the funding bank account so any difficulties there should show up a lot faster.

Is the shipping company well-known? It wouldn't be difficult to set up a scam so that the 'shipper' arrives promptly - appearing efficient and legit - and takes the car, then the payment defaults. Meanwhile they have disappeared without trace...

[BeerBudgetRacing]

You'll pay 3% fee unless the sender 'sends money to a friend'.
The problem is the source. If they are using a CC you'll pay. If it's a bank debit you might be fine.

[problemchild]

As a seller, I have taken a deposit by Paypal, only because I had multiple buyers, and confirming a deal was time sensitive. I would not be receptive to completing the transaction by Paypal. The % would certainly not be coming from my end. My question would be why? What game is the buyer trying to play? If they don't trust the seller, then don't buy the car. Have them wire you money.

BTW, with paypal, once the buyer returns an item, the seller is obligated to return the funds. I expect that sending payment as a gift totally subverts any protection that Paypal may provide

[John Nesbitt]

.. I expect that sending payment as a gift totally subverts any protection that Paypal may provide

Correct. Sending money as a gift carries no buyer protection. Because no buyer. Also, there is a limit on how much you can send. (At least, there was a couple of years ago when I last used that feature.)

[t walgamuth]

paypal charges too much for a large purchase. Also I don't trust them any more.

[mousecatcher]

it's ok if you do it F&F (friends and family) gift. then the buyer has no recourse. this is a perfectly fine way to sell something. it's cash equivalent.

if you do it as G&S (goods and services), and buyer pays the fee, just don't. PP favors the buyer in any dispute. it's a great way to screw over sellers. the idea is that it protects buyers from junk sellers -- which is a fair position and absolutely required if PP is to be viable at all -- but on the flip side there are just too many buyer scammers and even just simply people that have buyer's remorse. it would be ok if you know the guy, he gives you some stellar references of people you actually know, that kind of thing. but short of that, don't do it. insist on some other form of payment.

[EricP]

Bitcoin!

[Richard Hybels]

Have them wire the money to your bank.

[billtebbutt]

Wire transfer only. And if the buyer gives you guff, find another buyer.

A couple of years ago, I sold my restored 78 March 78B here on Apex to a UK buyer I had never met. He was buying it for a client, he runs a prep shop/dealer business. We had never met, nor talked for that matter. Just email between us, over the course of a few months, and the pics I had posted here. When he was ready to come to Canada (maybe 4-5 months from when we first spoke), he wired the money to my bank BEFORE he left England. So I had the car, and the money. The purchase was always contingent upon inspection, but he literally stuck his head in the trailer and said "Lots of safety wire used on it - always a sign of a well-prepped car", and that was it. Maybe a 5 second inspection.

He also bought my 68 MGB, sight unseen, at the same time. Now, there were ways I tried to help him mitigate his risk. I did put him in touch with a few professionals in our community that know me and my cars well, in case he wanted to check me out. And, while the deal took some time to get done, he was good on his word to a fault, and even brought me a pretty neat vintage racing gift when he showed up. We still chat.....

My point is, its usually worth the time and trouble to find the right buyer.

cheers,
BT

[BeerBudgetRacing]

Bitcoin!

The next frontier for IRS rectal exams. No thank you !

[ExKartracer]

Thanks everybody. Much appreciate the info!!