DAC vs. New CDP


I've just started looking into what DAC's really are. And I now have a question that I would like some opinions on. I've heard that DAC's can make a CDP sound great, but what if, for a few more dollars, I just got a new (or very nice used) CDP with the very latest DACs already inside?
I have a Classe .5 CDP, about seven years old. I know it doesn't have the modern DACs in it so I would think it's sound isn't as good as it could be. I'm wondering if I should look at a DAC to help the sound (CDP only has a AES/EBU output) or purchase a new or newer CDP. I've been looking at the Cambridge 840, Krell 280, Sim Audio, Bryston & Classe, all in the $1,500 to $2,000 range new or used. I know that the Benchmark DAC will cost around $1,200 new. Very few less expensive DAC's have an AES/EBU output.

My system is: Krell KAV 2250 amp, Krell KAV 280 pre, MF phone amp & headphone amp, Rega P1, Paradigm Studio 60, Kimber and RSCables.

Thanks for any input, ideas or experiences !

Jim
fritter5
Goatwuss - There are two schools (as usual). One says - get asynchronous upsampling DAC (jitter rejecting like Benchmark DAC1) and cheap transport since the only virtue of the expensive transport is lower jitter while the other school says - get NOS (non oversampling) DAC and better transport.

Cost wise first solution is better and that's what I did but you'll find many audiophiles who like NOS better. It is personal/subjective. NOS DACs are not as common as oversampling or upsampling DACs but you might like them.
No contest on this subject to me. IMHO the dac is everything in the final sound and transport really doesn't matter. I just got a bel canto dac3 today and it is phenomenal. I ran various cd players into it and you cannot tell any difference no matter the cost. Cables and power cords don't seem to matter much with this unit. Unbelievable soundstaging, imaging and definition with a nice warm sound. No digital nastiness whatoever. Get one. It is worth every penny! My next steps will be to set up a computer, digitize my cd collection and use a squeezebox into the dac. My wife is gonna be happy since there wint be cds everywhere and so will I because it will sound so damn good! This is the future and most flexible option long term.
Swanny - these upsampling DACs have so much jitter rejection that cables or transport don't matter and your Bel Canto confirms this. The only type of transport that will sound different is the one that is not "bit transparent" by means of DSP processing or digital volume control. As long as all bits are there there is no difference.

Goatwuss - I forgot to mention savings on digital cable with upsampling DAC and good digital cables are not cheap.
Kijanki and Swanny - Thanks for your thoughts on this.

Given this line of thinking, maybe it makes sense to get an inexpensive CD player with good controls/UI and little regards to its sound quality, and put the majority of the money into a DAC.

I've got to address my digital playback at some point, so maybe this would be the best approach...

So, maybe the topic for another thread - "What CD players available for under $500 on A'gon have the best build quality, controls, and interfaces?"
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