Did he send you back a computer virus? Like has been noted on other high priced CL ads it seems like things have gone through the roof on hobby sized machines.
A heavy 10 is sort of my ideal lathe, relatively small but with a 1-3/8" bore allowing full use of 5C collets. Realistically not enough of an improvement over the 11x24 that I have (bigger spindle bore is the only advantage) currently to go through the hassle of selling mine, buying and moving one, but enough of a thought that I do pay attention to them.
There was one on Ebay earlier this year asking $3500, it looked very clean and was loaded with tooling, but still didn't go anywhere fast. Since then I've seen several others on CL asking in the same $3500-4000 price range, one sold on ebay in June asking $4800 but they accepted a lower offer and ebay doesn't show the actual selling price.
Considering that a new PM1022 will run you $2500 delivered and a Heavy 10 will give you a bigger spindle bore, and a QCGB then $2500-3000 doesn't seem a bad price for a good one. $4500 puts you well past a 12x28 ($3600 delivered) and if you can manage a Heavy 10 in your shop, then the 12x28 is probably a viable option.
There is another Heavy 10, same general area asking $3900
https://sfbay.craigslist.org/eby/tls/d/union-city-south-bend-heavy-10-lathe-42/7175542164.html
and a 14.5x72" for $2500, so another example that smaller can drive higher prices
https://sfbay.craigslist.org/sfc/tls/d/san-francisco-south-bend-lathe/7173035930.html
Personally seeing this trend has convinced me that it is worth doing some concrete work to fit a longer lathe into my shop if I ever get serous about the need to upgrade to a bigger lathe, although there is still the issue of the small door.
