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Originally Posted by Undertoad
Cheaper guitars use cheaper materials and use cheaper labor to put it together. But it's not as bad as it once was: modern computer-controlled machining means that the cheap labor isn't responsible for the measuring and cutting and so forth.
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Machine-made vs. hand-made means lower $$$ for you, in a more consistent, entry or mid-level instrument. As a drummer, I'd know to say: get a Pacific (PDP) kit, the "import" version of a DW (expensive hand-made) kit. For guitars, I guess the equivalent would be a Squier, as suggested above. You're dealing with an experienced manufacturer, who knows how to build a proper professional instrument, and who can cut
just the right corners to put a decent-sounding product at a lower price point. Later on, if the pursuit becomes more serious, you've still got a decent back-up instrument, or one that can be used for odd tunings, or left at a practice studio, or whatever. Or, he could stick it in the attic and give it to
his kid someday. Who knows.
I guess I'm saying don't waste your money on a piece of crap of unknown manufacture, because #1 it will be discouraging to try to learn on an ill-tuning guitar, or one with bad action and #2 if he gets past the learning phase very far at all, he'll need something better anyway and you'll have wasted your $$$ on an un-sellable piece of firewood.
That being said my first response was going to be #1 pawn shop or #2 newspaper ad (in both cases, veteran musician lets go of one of his babies in order to earn a little holiday cash, either that or ex-hobbyist unloads expensive rig, or church band liquidating un-needed equipment)