I sold a pair of pedal boats via craigslist to a guy who says he runs a marina for Christian youth. When he came to pick them up, he noticed that there was water in the hulls. I said yes, they do take on some water and need to be drained after using them for awhile (there is a rubber drain plug on the back.) He paid me $600 and left with the two boats. Later, he texted me and said they are leaking a lot more than he expected,and he wants to return them. I said you knew there was water in them when you took them,but ok, I'll give you a refund. He writes back that he wants me to pay his expenses for travel and his helper (~$150) because I never indicated in the ad that they leaked. I said true, but I told you about it when you came to see them, and you still bought them. I said no way to the added expenses. Then he said they could be repaired for $73 each. I said ok, I'll pay half, since it was for a kids camp. Now he says I either pay the full repair cost ($146) or his travel expenses for picking them up AND returning them. I think since he was aware that they leaked when he picked them up, that I don't have any liability in this matter. Am I correct? Unfortunately, I didn't give him a bill of sale indicating that they were sold as-is, but isn't that generally the case? I thought my offer to split the repair cost was more than fair. Now he's threatening litigation if I don't take one of his offers.