having been on the buyer side of a paypal screwing, "winning" doesn't actually get you your money back in a private sale. That's a joke. If the seller doesn't care about losing that account and has no money in it, there's nothing further that happens.
escrow.com looks pretty reasonable. endorsed by all the major online car sellers, and has an easy byline for purchase vs shipping. Fees under $200 for this value transaction. Doesn't look bad to me.