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i had a similar issue
paypal's guarantee does not cover motor vehicles. luckily for me after they rejected my claim i initiated a charge back on my credit card. saved me $2k.
most states view an "as is" sale as incumbent on the buyer to beware.
AS is sales to not shield a seller from knowingly false claims but from what you posted he looks to have done enough to shield himself
outside of that, the cost of legal recourse pretty much is ruled out outside of a major f8ck job.
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