Here's my little sob story:

I recently purchased a Koga Miyata Randonneur from a seller on ebay (using paypal w/ cc). Worried that he didn't have the know-how to package it correctly, I asked him to take it to a bike store for packing. After he dropped the bike off, I payed for shipping over the phone with a credit card.

I finally received the bike a few days ago. On unwrapping it I find that there is a dent about the size of a dime in the top tube:



So now I'm pretty bummed out. The bike was described as having no damage (and the pictures are not detailed enough to be revealing...I know, I know...I've learned my lesson). I've been in touch with the shop that did the packing and they've said that there was nothing wrong with the frame.

I've filed a claim with UPS (the bike was insured for $200 more than I paid for it), as there's a chance this is shipping damage, but from other's experience this looks like a long shot at best.

I've also been in touch with the seller. He's said that there's the possibility that the dent was there, but he's obviously not someone who would notice this kind of thing (though I did explicitly ask before bidding about any dents, dings, etc). He said he would only reimburse if it's a structural/functional problem.

My question is: do I have any real options here for compensation? Ideally I would like to keep the bike. Even if I eventually replace the frame, the components are worth hanging on to. I could file a paypal dispute, but this would entail returning the bike, no?

Anyone have recommendations? Is this a live and learn scenario at best?