I'm with Steve, you need to look at what else is included, and what the lathe looks like. If it looks very good and has LOTs of tooling, then maybe consider paying near that. Still seems high to me. These come up for sale quite often, so you might want to look a bit before you jump into one for that much money. Check out eBay and craigslist, they sell on there often. Look for things like 3 and 4 jaw chucks, face plates, quick change toolholders, steady and follow rests. I bought a fairly well outfitted 12x36 Craftsman, and since I have purchased quite a few accesories for it, and I have probably around 1000 total in it. I would classify it as "well tooled" now. The milling attachment for these lathes typicaly goes for ~250, so if it has one, take that into consideration, although it is rare to get a lathe with one, they typicaly sell seperately (that's why the lathes you find on eBay are usualy stripped). The quick change gearbox lathes are usualy a bit higher in price, although for a hobby shop, the change gear lathes are more versatile. Of course, if you get a change gear lathe make sure you get he change gears for it, they will set you back 150 for a set. Motor in stand machines will be worth a bit more as well. Good luck in whateveryou decide to buy.