Upgrade CD player or get into LPs? Suggestions

Do it all.
I would buy a budget turntable to dip into vinyl. Vinyl is a new paradigm for you, and there are software issues (you may not be able to find playable lps of the music that you want to listen to). An entry level Rega or Pro-Jett, or Thorens table can be had for a few hundred, and remember to budget for a phono pre amp. If you get into vinyl then upgrade in the future.
With the remaining funds I would by a CDP with good digital inputs so that you can branch into computer audio. Basically you would look for a good DAC that also spins CDs.

I take for granted you do realize nobody can answer this question for you, but rather provide some food for thought. How much do you value the availability of online music? Or the flexibility digital streaming enables? Or the ritual of selecting a CD (or an LP, for that matter) and playing it? Or toying with mechanical setup of a vinyl rig? Only you can answer that.

Having said that, here's my take: I pondered around this a while back too. Freeing up funds for me is not easy and I marvel at the improved sound a great system provides, rather than being fascinated by various media. Plus I live overseas where CDs/LPs/Hi-rez availability is limited. So I'm focusing on playing files only with the best components I can afford throughout the chain. Unlike vinyl, which is a mature technology, and CDs, which I consider mature too, playing files is nascent so I prefer not to spend big bucks there anyway. $1k today buys digital playback performance we couldn't dream about 5 years ago, and I bet this evolution pace will continue for a while. So I upgraded speakers, then amp, then preamp, cables, got myself a Squeezebox Touch (great!) and now will get a DAC. Plus significant work on room accoustics.

I would love to eventually get into vinyl, but that will have to wait. Do you own many LPs? Does the music you like come in vinyl?

If I wanted to upgrade my CD player and had your budget, I would probably buy a used Esoteric X03SE. Can't comment on vinyl. Maybe get a DAC and use your Cary as transport + experiment with files?

Do you own several hundred records in perfect condition? Do you want to go from a quiet background to clicks and pops? Instead of buying a turntable look for an early ('85-'89) Magnavox CD player. Leave it on for several days and you will think you are listening to a turntable with a MM cartridge without the clicks and pops.

"Do you own several hundred records in perfect condition? Do you want to go from a quiet background to clicks and pops? Instead of buying a turntable look for an early ('85-'89) Magnavox CD player. Leave it on for several days and you will think you are listening to a turntable with a MM cartridge without the clicks and pops."

That is so ridiculous, it's hard to know where to start....

Nothing is going to sound like vinyl, but vinyl. I love my digital rig and enjoy it often. But it doesn't sound as good as my WT Amadeus, nor should it. Don't listen to these naysayers, especially not the one I quoted above. You have a good cdp, spend the money on a good turntable and preamp then start hitting the used record stores. You will be glad you did.

Shakey

Forget cds. Go for a TT or digital streaming.