Best Inexpensive DAC

I was using a Denon DCD1650AR CD player, when I also decided to run the digital coax output to an external DAC. (I'm using a BAT VK-20, Aragon 8008BB and Thiel 3.6's.) I chose a used Dodson Audio DA217MkIID, which is probably more than your budget allows, but the point I am making here is that the sound was totally transformed. The Denon makes an excellent transport, with solid, reliable and error-free operation with any CD I load into it. You may find that it might be worthwhile to get a better quality DAC, because you might be willing to live with your Denon longer than you think. For what it's worth ....

Good luck!

I think the Perpetual Tech P-3A is an okay piece. I own one and it suits my needs. I recommend the Monolithic power supply, for protection purposes. With the supply, it will be under $500 used. My only complaint is that it is not in the form of a component. It looks more like an ethernet router than a stereo component.

Your approach makes sense, but beware possible shortcomings of the digital out from an old cdp. I did the same thing and used, initially, the digital out from a 1992 top-of-the line Harman Kardon, the HK 7600 11, which was Class D S'hile and cost $600 new back then. I thought it was ok until I tried the digital out from my new inexpensive sacd/dvd/cdp (Sony DVP NS-500V. UNBELIEVABLE IMPROVEMENT. You might try another transport for comparison, eg. a cdp from a friend, just to double check that the Denon is doing its job.

CAL Alpha, 24/96 if you can find one.

Nuff said.

The fact that Cal Audio is out of business, you can get a great deal on an Alpha DAC. There are two versions, the newer is the 24/96 version. Both are excellent with some saying the original version is better. I owned one. This DAC will get tubes into you system and just makes digital sound right. I've seen them here on Audiogon for around $500-$600 bucks. Good Luck with your search.