Like you, I've been looking to upgrade to a larger lathe for almost a year, searching the local Craigslist and other sites, with absolutely no luck. I was considering buying new when I found a General 26020 through one of our local clubs for virtually nothing. The previous owner died last year, and his son decided to sell the lathe to a club member who would put it to good use. It was only advertised on the club mailing list, and I claimed it within 20 minutes of receiving the email. As people said, they don't last long. My advice would be to join one or more local clubs if you haven't already, and let folks know you are in the market. You never know what will come up.
Wasn't the ideal lathe that I wanted (if I went new, was going to look at the PM 3520, or maybe a Stubby), but for the money, and for 5 miles from my house, it was a deal I couldn't pass up. Even if I upgrade again in a couple of years, well worth it - just the value of the chuck, faceplates, and toolrests being sold with it are worth what I'm paying for it. I'm picking it up Saturday. Can't wait.
-John