I admit that it looks a bit odd but cannot see what the scam is, if there is one!

I'd kind of assumed this was some sort of rare model not generally available over there?

What is it, then?

potentially, although i doubt it. Its a Peugeot 207 Sport 1.4 sport 16v - do they have them over there?? I would have thought so

Just checked on cars.com and there are no hatchback Peugeot's listed so maybe this is a rare car in the US

Perhaps, but I can't see why a 1.4 207 would be so desirable (no offence!) as to go to the trouble and costs of importing.

A 1.2 Clio is probably rare in the States but I can't imagine many are imported.

It could be legit but I'd still stay well clear if I were you.

Peugeot did pull out of the States some years back and so that will obviously have cut off the supply of used motors. Maybe not a scam, then? I'd still want the money in the bank first

I have told the buyer that i would want the funds in my account via paypal before i release the car. The DVLA stated that if I write to them saying who i sent it to and when, then they will send a letter saying that the vehicle is no longer my responsibility as of the sell date.

Surely, if it is a scam, this should not be my problem after this?

Me too.

Just a guess, but does he want to pay by Western Union?

One PayPal scam works like this:
1. Payment is confirmed as made
2. You sell the goods.
3. Buyer tells Paypal it was an unauthorised payment.
4. PayPal reverse the transaction, you have no money, no goods, and a hard road looming ahead.

How could i prevent this scam from occurring (apart from not selling the car)??

Withdraw the paypal funds, keep records of all emails and documents etc.