Yes. But that is with any non cash transaction.
If he gave you a check, he could stop payment.
If he paid with a CC, he could dispute the charge.
The thing with Paypal is, and someone correct me if I am wrong...your proof of delivery is a Delivery Confirmation number...which is for shipping purposes. I am not sure how you would prove the buyer took the car, unless you have them sign a receipt or something to that effect. Look over Paypal's Seller's guidelines on how to handle an in person delivery like you are describing.
Good luck,
Dana
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