Hiya! You are talking to the dope’s expert on cheap electrics here.
There’s three levels of cheap guitars. Crap, cheap-cheap, and cheap.
A beginner should not have a crap guitar. Makes life worse for everyone. Unless, like me, they like to rebuild things. I still have to replace the neck on my Pig. That bottom-end Stratocaster had frets that cut my fingers every time I played. Don’t do dat.
Cheap-cheaps are your Rondos and your Xavieres. The Rondo Agile line, with the full maple cap, are very nice. But I personally prefer the Xavieres, the hardware and pickups are better. (the pickups on an Xaviere are outstanding.) You’re looking at $200, but it’ll require some TLC later. Probably some fret polishing. But the woods are nice… my Telemaster is a three piece that at first and second glance people thought was a one-piece, it was matched well, it’s kiln-baked alder, and so on. The neck is outstanding. Needed some fret polishing, but the shape is good. The inside, the routed out places? It’ll be a little rough there, not polished, probably. You can fix that yourself, though. Little sandpaper, if you feel like it. Maybe add some shielding, these tend to have some slight shielding issues.
Cheap are your Epis and your Fender Pawn Shops, or high-end Squiers. $600 or so. And there’s some very nice choices there. But don’t get a brand-name for less than 500ish. They’re not very good. Maybe an Ibanez at $300-400. Truthfully, better construction… but the pickups won’t be good, you’ll probably want to replace them. But don’t buy a Gibson at this level, trust me.
And then there’s deals, like Malden’s factory cleanout. People are really happy with their Maldens.
Thing is, there’s enough variance here that it really depends on what you want to play, for me to advise a specific sort of inexpensive guitar.
Unless you want one with everything, of course.
http://www2.gibson.com/Products/Electric-Guitars/Designer/Epiphone/Nighthawk-Custom-Reissue.aspx