New dac or cd player

I currently have a sony dvp-s7700. This cd player has worked very well over the years but I feel it is time to make a change in my source that I use most often. Curious as to what fellow agoner suggest concerning going with a dac and keep my sony or purchsing a new cd player (used)

The rest of my system entales a classe twenty pre, audio research d-60 amp, thiel 1.5 speakers, music hall mmf5 TT, project phone box.

I was thinking more towards a dac. I feel that the sony dvp-s7700 has a fine transport and there is no sence in paying for another. I also have a budget of about $500.

Let me know your thoughts. New-Used cd player, or separate dac from my sony.

Always appreciated.

Chris, I believe you will get a greater bang for your sonic buck by using your Sony as a transport and getting a DAC. In your budget range see if you could get either a used/demo Benchmark or Bel Canto 2. They are both outstanding, I prefer the Bel Canto because I find it as detailed as the Benchmark but warmer with more liquidity to my ear's. It's personnal taste/system synergy which is really the final criteria in the long run, so your ear's have to decide which "flavor" you like best.
Even used,that budget(dac and cable?) limits you to most likely a backward step.
I agree with Teajay but remember to get a good digital cable also.

Happy Listening.
Go with the Dac. You can get a great Dac for under $500 that far exceeds the Dac section and output of even a $2500 player. You just have to know what to look for.

Have fun
I agree with Gmood1, lots of very good DACs out there for $500 or less new and used. Look into some of the non-os filterless DACs which will give you even more bang for the buck versus upsampling DACs.