Safe to accept a Paypal car deposit?

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I am selling a car on local craigslist and a car enthusiast site, an out of state buyer has contacted me about the purchase and offered to make a paypal deposit, then pick up the car in a week with the balance via cashiers check. The buyer seems legit enough, the phone number matches the name and he is a small business owner which also lists him under the same number. Having said that I am weary of accepting a deposit that can then be charged back... what is the best safest way to proceed?

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Honestly why take the deposit? Just tell the person that you will hold it for them without a deposit. If they come with ... (more)

vnuts21 (Aug. 05, 2016 @ 6:07a) |

That's pretty nasty if you're the kind of person to do that. Not everybody has the cash in the bank to do a deal right n... (more)

atikovi (Aug. 05, 2016 @ 7:05a) |

Tell him you'll hold it as soon as you see that he purchased a plane ticket. That seems like a legitimate deposit. If he... (more)

meade18 (Aug. 05, 2016 @ 8:50a) |

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Tell him to skip the deposit, you'll hold the car for him and have him pay in full when he comes out? Worst case you're out 1 week of waiting to sell to someone else.

If you want to sell to this guy just take the deposit, have him come with the full price in a cashiers check, and when he shows up just return the deposit via paypal.

Also, make sure he draws the cashiers check from the same bank you turn around and cash it at.

Don't do it.

Don't do it.....repeat!!!

Cash only. Hold every bill up to the light and make sure it's real.

Can you guys please elaborate, how would I get hurt on this? If the paypal deposit comes from a bank account as opposed to a credit card can a chargeback still be initiated?

Yes

Yes a chargeback can be initiated. And expect Paypal to side with the buyer on it and try to drain your checking account or send it to collection. Cashier check via overnight courier or just hold car for the week and "Cash only", or cashier's check from your bank or a local bank.

Last thing you want is to be out funds because somebody decided "I'll just dispute the Paypal charge"

Here's an example of what can go wrong: The guy comes and picks up and pays you. A week after he gets the car home the check engine light comes on (or something else goes wrong). He starts bugging you to do something about it, even though you sold the car AS-IS.

If you accept his paypal deposit that money could be pulled in a dispute. If you don't then he's SOL.

Stubtify said:   Here's an example of what can go wrong: The guy comes and picks up and pays you. A week after he gets the car home the check engine light comes on (or something else goes wrong). He starts bugging you to do something about it, even though you sold the car AS-IS.
  Or you did the guy a favor and replaced a dead battery , then he comes to you when it rains and floods the pax side of his car

Accept a non-refundable 5-10% of price in cash by MO to hold car. All rest cash in hand at your bank. Make sure in your state that signing over title & bill of sale are enough to release you of further liabilities. In some states it is NOT.

This isn't a risky transaction as long as you have a sales contract executed before he takes delivery. You can always repo the car if his payment isn't valid.

Out of State + Craigslist = Scam

How can an out of state person even find your car? Craigslist tries to prevent listings from out of your county, let alone out of the state.

TravelerMSY said:   This isn't a risky transaction as long as you have a sales contract executed before he takes delivery. You can always repo the car if his payment isn't valid.
  That seems like a lot of work

Did the buyer reach you through the enthusiast site or through Craigslist? If it was through the enthusiast site, he may have established a reputation (good or bad) on that site. That reputation may be enough to help with this decision.

I found a car that I'd been having trouble buying locally, with some issues but at 1/2 the usual price, on Craigslist 900 miles away. Talked to the seller at length on the phone, he gave me the rundown on what his mechanic said it needed. I offered to paypal the entire amount plus 3% if he'd tell me who the mechanic was. I checked out the shop online, called the mechanic, everything the mechanic said made perfect sense. I arranged for a couple of things to be fixed there, called the seller back and paypal'd the money, bought a cheap airline ticket two weeks away and flew out to get it.

Looking back on it, there was a lot of risk on both sides. I could have been out the airfare plus been stranded in Boston, he could have been fighting a Paypal dispute after I drove home. It all worked out, the only issues were caused by the seller dropping the car off at the shop a day before my flight instead of getting it fixed the week before and giving the mechanic time to source all the parts he'd need.

baltik said:   Can you guys please elaborate, how would I get hurt on this? If the paypal deposit comes from a bank account as opposed to a credit card can a chargeback still be initiated?
  This is the internet so half the people here don't know what they are talking about. Paypal payments on motor vehicles are not subject to buyer protection. https://www.paypal.com/webapps/mpp/ua/useragreement-full?country...  Section 13.3

forbin4040 said:   Out of State + Craigslist = Scam

How can an out of state person even find your car? Craigslist tries to prevent listings from out of your county, let alone out of the state.


What? I am in Chicago and can easily browse anything on CL in any state. All you have to do is to pick different city or town nearby and keep doing it and it will keep refreshing the screen with new results.

ach1199 said:   forbin4040 said:   Out of State + Craigslist = Scam

How can an out of state person even find your car? Craigslist tries to prevent listings from out of your county, let alone out of the state.


What? I am in Chicago and can easily browse anything on CL in any state. All you have to do is to pick different city or town nearby and keep doing it and it will keep refreshing the screen with new results.


There are also websites that will aggregate CL listings thoughout the country or region.

I don't think it's safe to accept Paypal for anything... you use it and assume the risk.

no

atikovi said:   
  This is the internet so half the people here don't know what they are talking about. Paypal payments on motor vehicles are not subject to buyer protection. https://www.paypal.com/webapps/mpp/ua/useragreement-full?country...  Section 13.3
  

You think Paypal obeys its own rules, and you think Paypal won't go after the OP if the buyer does a chargeback on his credit card?

forbin4040 said:   Out of State + Craigslist = Scam

How can an out of state person even find your car? Craigslist tries to prevent listings from out of your county, let alone out of the state.
  

Let's say I want a first generation RX-7, but only the top of the line 1984-1985 model with the larger engine used in the 2nd generation chassis. All I have to do is go here:

https://www.google.com/search?q=site:craigslist.org+mazda+gsl-se

taxmantoo said:   
atikovi said:   
  This is the internet so half the people here don't know what they are talking about. Paypal payments on motor vehicles are not subject to buyer protection. https://www.paypal.com/webapps/mpp/ua/useragreement-full?country.x=US&locale.x=en_US#13  Section 13.3

  

You think Paypal obeys its own rules, and you think Paypal won't go after the OP if the buyer does a chargeback on his credit card?

  Credit card companies won't do a chargeback on titled property.

atikovi said:     Credit card companies won't do a chargeback on titled property.
Surely you can do a chargeback on a "fraudulent" paypal payment to an individual, it's not like your card went through a car dealer's POS terminal...
And sorry for calling you Shirley.

The risk isn't on a buyer reversal. The risk is that the payor is using a stolen credit card. PayPal will reverse that quicker than you can say "PayPal scammed me". PayPal is a horrible company and I would never expect any payment on there from non friends to be safe.

I accepted a PP deposit on a car once. I then reversed the charge when the buyer showed up and he paid me 100% in cash for the exact reasons outlined in this thread. I told the buyer in advance what my plan was and he was fine with it. It all worked out fine, but I agree with everyone else -- I wouldn't take PP for a car (or other large transaction) sale.

Ecuadorgr said:   
atikovi said:     Credit card companies won't do a chargeback on titled property.
Surely you can do a chargeback on a "fraudulent" paypal payment to an individual, it's not like your card went through a car dealer's POS terminal...
And sorry for calling you Shirley.

  You would be notified of a fraudulent payment pretty quick, certainly before the deal for which the deposit is used for is consummated. And what is the benefit for the fraudster?  It's not like the guy giving the deposit has any use of the funds. Assuming you get the balance in cash, the most you would out is the deposit but still risky for the fraudster.  You can I.D. him and probably see the license plate of the car he comes in, your can trace the car when he registers it, etc. Where did you call me Shirley?

ach1199 said:   
forbin4040 said:   Out of State + Craigslist = Scam

How can an out of state person even find your car? Craigslist tries to prevent listings from out of your county, let alone out of the state.


What? I am in Chicago and can easily browse anything on CL in any state. All you have to do is to pick different city or town nearby and keep doing it and it will keep refreshing the screen with new results.

  
Not to mention when I was looking at motorcycles and there were not many returns but...:
Craigslist sez: said: Few local results found. Here are some from nearby areas. Checking 'include nearby areas' will expand your search.

And these were from a 3 state area.

---

If you don't want to take a Paypal deposit just offer to hold it for him without one.  Then just cash the check at a branch of his bank if you can - the same one you use to notarize the sale.  (NC is silly, took 3-4 seals to get it done and the local branches all have a full-time notarizer..  I had to wait in line...  LOL.


Edit to add:
Oh, and I paid for my last car purchase via paypal -- buyer was perfectly willing to take Paypal for the whole price (just over $3000.)  In our case specifically because I WAS from out of state.  I also bought the car THOUGH eBay.   A car is titled and registered, so the technical term for not paying for it is "Grand Theft Auto."  Eventually you WILL get found, taste the dirt, and take a ride.  We also had all the Florida mandated proof-of-sale and contracts so that they were released properly from the title.  (I re-titled it in Texas)

I sold a van for a personal check in Texas.  I was not worried at all about it, again, because I had clear photos of the drivers licenses and a bill-of-sale.  ($4000 check and $1000 cash)


atikovi said:   
 Where did you call me Shirley?

  


Surely you can't be serious?

RedWolfe01 said:   If you don't want to take a Paypal deposit just offer to hold it for him without one.  Then just cash the check at a branch of his bank if you can - the same one you use to notarize the sale.

And a week later he calls saying he bought something else, meanwhile you turned down three potential buyers with cash in hand. I assume you haven't sold many cars and haven't learned all the games people play.

jd2010 said:   If you want to sell to this guy just take the deposit, have him come with the full price in a cashiers check, and when he shows up just return the deposit via paypal.

Also, make sure he draws the cashiers check from the same bank you turn around and cash it at.

  You beat me to it. This is the best course of action. Just make sure you verify the cashier's check by calling the issuing bank, to verify it's authenticity.

atikovi said:   
RedWolfe01 said:   If you don't want to take a Paypal deposit just offer to hold it for him without one.  Then just cash the check at a branch of his bank if you can - the same one you use to notarize the sale.

And a week later he calls saying he bought something else, meanwhile you turned down three potential buyers with cash in hand. I assume you haven't sold many cars and haven't learned all the games people play.

  
Then take the deposit on Paypal and don't whine about it?  

That is sorta like wanting to live on an island when you hate boats.

Yes,take the deposit on Paypal and don't whine about it.

RedWolfe01 said:   
That is sorta like wanting to live on an island when you hate boats.

  Or wanting to live in a city when you hate cars?

atikovi said:   
RedWolfe01 said:   
That is sorta like wanting to live on an island when you hate boats.

  Or wanting to live in a city when you hate cars?

  
Mass Transit, bicycles, ect...  (I know a few car haters in the city... or they are just cheap, hard to tell sometimes)

TL;DR.
 That cashiers check is fake. Plz dont do this.

Just take $500 bucks via paypal and then take the rest cashiers check at a bank to make a valid deposit. Meet in the bank parking lot and deposit with him.
Worst case senario on the paypal if he disputes, you just gave him $500 off the car.

Skipping 9 Messages...
Tell him you'll hold it as soon as you see that he purchased a plane ticket. That seems like a legitimate deposit. If he's close enough that he's driving, tell him to call you when he leaves and you'll hold it for however many hours it takes for a normal person to drive the X number of miles.



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