$1k would be a good deal if it's working properly, they're $20k new (for the DC5, which I don't think has any huge improvements over the DC4) and $3k for a replacement ColorControl dongle, I believe. Does it just come with 1 cassette or a complete set? Keep in mind you'll need a cassette for each color you're printing with, so if you're printing CMYK (I don't really recommend this) you'll need 4, if you're printing using 3 spot colors you'll need 3, etc.
I say I don't really recommend printing CMYK because it's very hard to get it to look good. It has a low DPI and prints in 3.93" passes, so you almost
always have a pass line every 4 inches. It really shines if you print a lot decals using spot colors and preferably under 3.93 inches. The spot color pass lines aren't as noticeable, but they're there if you look for them since it overlaps a slight amount every pass.
As to what to look for, ask for total printer usage (see image) and ask for a solid color test print; it doesn't matter what color the print is since it only has 1 printhead (see image). If I remember correctly the printhead has 1024 individual heating elements that heat up the resin and transfer it to the substrate, so if you look closely and you see a blank spot that goes the entire width of the print then it has a bad spot. If I remember correctly a new printhead is about $2,500 but fairly easy to replace.
I ran one of these for several years, so if you have any questions I'll try my best to answer.