how do you know if you need a dac ?


have always been into vinyl and recently decided to get out of it and bought a Ayre CX-7 cd player.    while it sounds just fine, I read in the forums about members getting dacs.         

how do you know if you need one or not ?

what benefit would one add if any ?
toyo18
@goofyfoot 

"  Are you certain you can't use your CD player as a stand alone DAC as well? If not, I'd call Ayre."


Can you explain that please , not sure I understand.    
toyo18, I know that Ayre made a high end CD player that could be connected to a computer and used as a stand alone DAC but I don't remember the model number of the CD player. Anyway, the DAC chip that was inside that CD player was their best, most analogue sounding DAC chip but it became discontinued because they were unable to acquire the parts. So my question pertains to whether or not you can connect your computer to your CD player?
"Preamp is rca only, so if I wanted to try the xlr from the Ayre , would have to get the adapters.....and not sure if would make a difference ? could try I guess."

Don’t do it. adapters may degrade the sound ,rca are good enough. Your player has already very good build in dac IMO you don't need standalone dac.
I was using CD transport/player as a means to feed into pre-amp/integrated amp to listen to music for many-many years.

For me, below things pushed me to use DAC and get rid of my CD transport:
a. My CD-transport couldn't handle hi-res audio ( I use HDTracks to buy my hi-res audio) .
b. I was getting tired of getting up everytime I wanted to change the CD and listen to a different album/track.

Now, I have connected my laptop (running JRIVER - with all my CD ripped + Hi-res audio) into the DAC and can select/change tracks on my phone, while sitting on the sofa, sipping beer. I am exploring/enjoying old music, which got lost in the heap of CDs previously.

All the best with your decision.