I paid $600 for mine on an eBay buy-it-now listing a couple years ago. It came with a brand new Grado Silver ($190 list) and all the original packaging including the box and the locks for the tonearm. I also bought it from The Turntable Factory, so I felt very certain it would arrive properly packed and working well, which turned out to be the case. I remember well my feverishly researching the turntable and pricing, trying to decide if I wanted to spend that much, and hoping someone else didn't buy it before I could make the decision. I love my SL-M3.
It is hard to tell what is going on with the stylus. The stylus carrier isn't fully seated on the cartridge, and from the back side of the turntable, where the photo was taken, the clear plastic prism (the stylus illuminator, which is removable) is in the way of seeing the cantilever.