Photo: PayPal
The financial sector intersects with the automotive sector more than we'd like to imagine. But at least two entities respective to these industries should always remain separate. These are used cars and PayPal. Not the least bit because of an unfolding scandal regarding perceived abuses inside updates to the money intermediary company's terms of service.
The nature of these regarding PayPal's alleged attempt to censor people they believed to be " sending, posting, or publishing any messages, content, or materials that promote misinformation." as reported by Fox 32 Chicago. Fines of up to $2500 were threatened to be levied per violation and elicited nearly immediate backlash throughout all social media platforms, including Twitter's tentative new owner, Elon Musk. This latest scandal in the history of a company history checkered with controversy gives us the perfect opportunity to talk about PayPal in relation to buying a used car, something our audience cares a whole lot about.
Between PayPal and its more casual sister app Venmo, you can pay for just about anything using either platform. But with Venmo especially, you won't be buying a used car through the app unless it's a certified jalopy. According to information provided by the privateauto.com blog, Venmo's weekly transaction limit of $299.99 per week for unverified users makes this the case. Verified accounts get their limit upped to $6,999. But really, is that going to buy a reliable used car in 2022? Maybe if you're lucky, but we doubt it.
That's without taking into account the considerable transfer fee at a three-percent flat per transaction the seller must take into account. PayPal's maximum limit of $60,000 per transaction might sound a lot more tempting. But unless you're best buddies with the person on the other end of that transaction, there's no guarantee they will mail you the title and ship the car to you.
The Ineligible items and Transactions section of PayPal's official Buyer Protection policy manual lists motor vehicles "Including, but not limited to, motor vehicles, motorcycles, recreational vehicles, aircraft, and boats, except for personally portable light vehicles used for recreational purposes like bicycles and wheeled hoverboards," as items the website's protections can't cover. Along with items like rent payments, financial investments, and gambling.
In no uncertain terms, PayPal perceives a risky investment like a used car as something as dubious as stock trading or counting cards. Something they can't necessarily stop its users from using their services for, as each payment is completely ambiguous unless user-entered transaction notes specify what the payment is for. Still, they'd absolutely prefer you use some other form of payment. Heaven forbid the user on the other side just decides they don't feel like sending you the title out of the blue.
In the worst-case scenario that the alleged seller of this used vehicle cashes out and runs off with your money, there is not much PayPal's policies can do for the victim. It is up to the victimized party's legal team to recoup their losses if they can even track them down. So please, do yourself a favor. If you see a used car on Craigslist or even just around your neighborhood, you should go to the bank and take out some cold hard cash.
Alternatively, you could always use a cashier's check or an ACH direct deposit if you're going through a dealership. But when it comes to cheap, used cars especially, taking care of the deal with a stack of Ben Franklins is the safest, easiest, and most foolproof way of getting the deal done without needing an internet middleman to do most of the work for you. When it comes to one of the worst experiences an adult has to go through this side of buying a house, it's best practice to keep things simple.
So please, avoid using PayPal for your important payments, used cars especially. Unless it's a beautifully ornate decorated Fabergé egg or some other inconsequential knick-knack, or maybe to pay for that amazing taco cart in town you always go to.
Between PayPal and its more casual sister app Venmo, you can pay for just about anything using either platform. But with Venmo especially, you won't be buying a used car through the app unless it's a certified jalopy. According to information provided by the privateauto.com blog, Venmo's weekly transaction limit of $299.99 per week for unverified users makes this the case. Verified accounts get their limit upped to $6,999. But really, is that going to buy a reliable used car in 2022? Maybe if you're lucky, but we doubt it.
That's without taking into account the considerable transfer fee at a three-percent flat per transaction the seller must take into account. PayPal's maximum limit of $60,000 per transaction might sound a lot more tempting. But unless you're best buddies with the person on the other end of that transaction, there's no guarantee they will mail you the title and ship the car to you.
The Ineligible items and Transactions section of PayPal's official Buyer Protection policy manual lists motor vehicles "Including, but not limited to, motor vehicles, motorcycles, recreational vehicles, aircraft, and boats, except for personally portable light vehicles used for recreational purposes like bicycles and wheeled hoverboards," as items the website's protections can't cover. Along with items like rent payments, financial investments, and gambling.
In no uncertain terms, PayPal perceives a risky investment like a used car as something as dubious as stock trading or counting cards. Something they can't necessarily stop its users from using their services for, as each payment is completely ambiguous unless user-entered transaction notes specify what the payment is for. Still, they'd absolutely prefer you use some other form of payment. Heaven forbid the user on the other side just decides they don't feel like sending you the title out of the blue.
In the worst-case scenario that the alleged seller of this used vehicle cashes out and runs off with your money, there is not much PayPal's policies can do for the victim. It is up to the victimized party's legal team to recoup their losses if they can even track them down. So please, do yourself a favor. If you see a used car on Craigslist or even just around your neighborhood, you should go to the bank and take out some cold hard cash.
Alternatively, you could always use a cashier's check or an ACH direct deposit if you're going through a dealership. But when it comes to cheap, used cars especially, taking care of the deal with a stack of Ben Franklins is the safest, easiest, and most foolproof way of getting the deal done without needing an internet middleman to do most of the work for you. When it comes to one of the worst experiences an adult has to go through this side of buying a house, it's best practice to keep things simple.
So please, avoid using PayPal for your important payments, used cars especially. Unless it's a beautifully ornate decorated Fabergé egg or some other inconsequential knick-knack, or maybe to pay for that amazing taco cart in town you always go to.
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