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I'd take that money and buy a good American Tele, Strat or Les Paul with great action
and good electronics.
You'll have a much better time learning on a well made guitar that plays easy and stays in tune.
There are thousands of great used guitars available in almost any major metropolitan
area. In most cases, you'll find a fantastic used model for between $400-$800.
If you're not sure about the condition of the guitar, have a seasoned player look at it before you buy.
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