This is an answer by Libby Forstner of Magical Farms answering a question from a prospective alpaca owner on how to decide on a first purchase...her answer is great!

It is a lot of money and I would suggest first that you take your time.

1.  Learn the differences between low quality, medium and high quality
alpacas.  This way when you enter the market, you will know where you are
entering and if the price you are paying is high, low or just right.  Learn
about conformation and fleeces before you buy.  Attend workshops at AOBA,
local affiliates.  Best education is to visit farms and LOOK at their
stock.  Look at what they think is their best alpaca.

2.  Visit LOTS of farms, not just one or two.  Contact customers of farms
before you buy..

3.  Look closely at contracts and guarantees.  There are big differences
between farms...find the one that "fits" best with your needs.

4.  Take show information results with a grain of salt. Do NOT make it the
reason you buy.

5.  Look at offspring from males to determine the male's effectiveness.

6.  If you buy a female, try to get a free breeding. Make certain that the
herdsire was a good choice for her.  See #1.

7.  Make certain that the farm you buy from will back the alpacas you buy
and teach you how to care for them.  This is especially important with the
first purchase.

8.  Be realistic about the costs...will you have your own farm or Board?
Can you afford medical bills?  Shed/barns?  Marketing? etc.  There are
excellent tax benefits as long as you have an accountant experienced with
alpaca livestock.  People can help you with referrals if you don't have
one.

9.  Don't hesitate to approach anyone in this industry and ask questions.

10.  Do not be in a hurry.  (should be #1)  Don't feel pressured to buy
anywhere.

11.  Don't be afraid to make an offer on the alpaca of your dreams.  But
don't get so attached that you can't turn away from it...there's another
around the corner.  (I can hear my friends laughing at this one).

12.  Enjoy yourself.  Window shopping can be lots of fun and you can meet
some great people.

We made just about every mistake a person could make when we
started....feel free to contact us or other folks on this site if you have
any questions.

Just some ideas. Hope they help.
Libby