[VRM]

I have one bank account linked to my paypal only. Any time I get money into my Paypal account I transfer it to my bank account, and then transfer from that bank account to my primary bank account. It might be a PITA because of the few days it takes to get money transferred, but it is worth the extra security.

And yes - this looks like a scam. There are a couple of ways one like this usually goes:
1. He sends you money and someone picks up the 'item'. Then he reverses the charges and claims fraud. You get investigated by Paypal, and are out the money AND the car. There is also the possibility that he would try to pay you extra and you would then give that extra cash to the agent, now you are out the car as well as the extra cash.
Or, (more likely)
2. You open a valid paypal account using a real link. You then send him the email address linked to that account for payment. He then sends you a spoofed email saying that you have received funds in your paypal account when the pickup agent shows up. The guy takes your car, and you have nothing but a fake email with a bunch of pretend money.

I'd call your local police and see if they want to catch the agent. But ONLY do that if you really feel confortable with how the scams work (and be aware that there may be other scams and methods that can catch you out.)

Steve