Go to a pawn shop and buy a used name brand instrument such as a Gibson or even a few lesser but well made brands.
You don't want to get a guitar that sounds like a toy. It should have a great, rich tone.
The other thing you want to do is examine the instrument for damage. This damage will most likely be to the neck. Often, people will mistreat an instrument and warp the neck. At this point, it is junk.
To check for a warped neck, look down the length of the guitar from the bridge and see if the frets are parallel looking. It should look like a pristine set of railroad tracks. A warped neck will have a certain crookedness in the appearance of the frets.
The next thing to do is check for fret buzz. This is where the string vibrates against a fret when you have it fingered on a different fret. This will most likely occur around the area where the neck goes into the body of the guitar (the 12th fret.) Play different notes on all the strings. If you get the buzz, don't buy the instrument.
You can buy a new instrument for cheap, but you won't get the same tone as a classic.
Out.