Seeking advice on possibly returning Audio Gear I got on another marketplace.


So I'm new to the world of Hi-Fi, but I've been a lover of music for my whole life, so this is a mostly natural progression. I'm 25 years old, and I basically grew up entirely on digital music; 98% of my collection is on CD or FLAC/WAV stored on my laptop. So, with all that being said I decided to go on the hunt for a decent DAC and decided on the Cambridge DacMagic. I was able to find the one they made in 2008 that's almost identical to the DM Plus spec wise except with lower sample rates, and no digital pre amp option. I was able to find one for about $200 with shipping on another site, and just went for it. Big Mistake... The person who I purchased this from was a first time seller, but I figured it'd be okay because the DacMagic looked to be in good condition, and the listing wasn't As-Is. A week and a half later I get the box delivered to my front door, and my excitement quickly turned into upset when I realized that it seemed like whatever was inside the box wasn't packaged properly. Sure enough when I opened the box up I saw both the DacMagic and the regulated power supply seemingly tossed inside the box completely bare. When I pulled both items out there was deep scratches and dings all over the face of the DacMagic. Most of the time I'm not picky about minor cosmetic damage, but this is very bad. The power supply the person "Gifted" me had it's input jack broken off from the circuit board somehow and I'm not convinced it was due to shipping. The seller didn't include anything else either, no cords, no manual, nothing besides two heavy black boxes that happen to cost me over $200. I don't know if the DacMagic actually works because I don't have a way to test it out. I filed for a return, and just got a message saying they would accept it back.

My question is much more simple than all of that. Basically, do you think I should return this thing? I was hoping to use it as a trade in when I'm ready to upgrade, but I know that Cambridge isn't the most desired or qualified brand in regards to Hi-Fi, so does anyone know if a trade-up with this is even an option? I could probably have it repaired for around $20, and my guess is that the DacMagic works but the power supply doesn't. I'm not against getting something else for power anyways. And even then is it worth repairing if the Dac does happen to need it? Basically, I could get around $250 back, but in that price range, is it actually worth buying another DAC if I can get this one working? I mean, how many dac's for around that price are going to be equal or better than the Cambridge? 

Tl;DR 

I got my first D/A Convertor and it arrived damaged and non functional at this moment. Is it worth returning and should I be concerned about the cosmetic damage losing it's value for a trade-in later on because would a entry level 10 year old DAC even be worth trading in for most audio dealers anyways? I could probably get another DAC for the same price as this one, but I wouldn't get the return for up to three weeks, and I can hopefully get this one working before then and start enjoying music sooner. 


Thanks for you time.

P.S, 
I posted on this site because I'm seeking actual knowledge, I'm well aware that most of the selling on here has to do with High End gear, but everyone has to start somewhere. 
 
128x128audiodoggy

My advice. Have this discussion with the other party.

ONLY they can remedy your concern and resolve. Ever take a second to think how going public with strangers first could possibly in real terms help or if its read by the other party it could hurt your chances by response based on the emotion of that?

It may be a low cost item, but it surely doesn't lesson the value of being direct and personable to sellers... just a thought...

It's not how much money you spend, its how well you match your components. Give someone that has little knowledge of audio 10k, and 2.5k to an audiophile that knows what they're doing, and the audiophile should be able to put together a better sounding system rather easily. The more you know, the less you have to spend.
I completely agree, but I didn't want to seem unaware of the community I'm asking advice from. That's actually why I was interested in the Dacmagic to begin with. 
" I posted on this site because I'm seeking actual knowledge, I'm well aware that most of the selling on here has to do with High End gear, but everyone has to start somewhere. "

It's not how much money you spend, its how well you match your components. Give someone that has little knowledge of audio 10k, and 2.5k to an audiophile that knows what they're doing, and the audiophile should be able to put together a better sounding system rather easily. The more you know, the less you have to spend.
Thanks for all the advice everybody. I actually think what I'm going to do is return it and use the money towards a good phono cartridge.... I'm right on the verge of just doing away with digital all together. 

Also, is anyone in Washington State, or NYC and nearby who has a Modi I could audition if I still decide to do the D/A Convertor route? 
Return it.  DAC quality at the lower end of the range is very very good, these days.  There are 10 nice DACs in the $200-300 price range on this board right now.