You guys need a reality check.
It costs fifty bucks to list a car. If it sells, you pay another fifty. That's pretty damn cheap to have the entire world able to see your ad. Paypal takes 3% as a transaction fee. I use it all the time for the small stuff, but with a car I would specify "payment by bank transfer or cashier's check from a major bank". As far as the cashier's check thing, specify that you will only accept one from a bank that has a branch near you. Bank of America is a good one. That way, there are no issues with fake cashier's checks. You can just go in and cash it.
I sold a Porsche on eBay for $13,500. It cost me $100 to do it and it was painless. Take lots of good pictures, set a reserve if need be and give a clear, concise description. You should do well.