Upgrade Help: CDP or DAC


I currently running Marantz 5004 CDP, (speakers) System Audio Mantra 10, (Amp) Exposure Super XV.

The current weak link is the CDP. I am looking for a less bright sound. A sound warm/liquid and open with a good sound stage. I willing to for go extreme resolution and bass slam.

I wanted to spend $700.00 used. I was wondering if I should use the Marantz as a transport and buy the best DAC I can or should I just sink the money into a used CDP.

I did find the Marantz very bright the addition of some good interconnect smoothed it out but still just a little to bright for me.

Thanks for any thoughts
darkstar1
On a side note, you should also research cables in the archives. You'll need a Toslink (optical) cable from CDP to DAC input.
Try not to let all the different opinions in the threads drive you crazy. You don't need to spend big bucks for a decent cable.
Definitely go for a DAC, and if you're looking for a warmer, more musical sound, then I'd suggest you try the Rega DAC, which you can find used for $700 or less. I have tried a number of DACs and I find the Rega is one of the most non-fatiguing around.
PS -- following up on my suggestion of the Rega DAC -- I personally prefer it to tube DACs I've tried (including CAL) -- quieter background, no worries about tube rolling.

Your Marantz 5004 player has coaxial digital output. Contrary to what Lowrider says, I think you should use coaxial, not optical. But I agree that you don't need an expensive cable. You need a true 75-ohm cable. Best best is a digital cable from Blue Jeans Cable. Well-made, no nonsense, fine sound.
Yes, I meant to include the coax output; it is the preferred connection from transport to DAC. Momentary lapse.
YES ! keep the Marantz as a transport and get a Solid state or Tube DAC! There are so many out there,I would recommend you look at something from Parasound,Musical fidelity,cambridge audio,Nuforce..I use a crappy jvc mini system to send a optical signal to a Monarch Audio DIP then out using XLR cable to a MSB Technologies Nelson DAC...the sound is simply awesome.

Matt M