You can find a used guitar for half the price of a new one, but it is important that the guitar is playable. This means that it can be tuned properly, that the neck isn't bent- this is common with older guitars. The way to check if the neck is bent, is to hold the guitar up with the body closest to you ( head and neck of the guitar furthest away from you) and look along the neck. Be sure that there arent any bumps and that the neck is fairly straight. The strings should not be too high off the neck-for example-when you press a string it feels comfortable, and doesnt require too much effort. If when you play the guitar, it buzzes very noticably, or sounds like the string doesnt ring cleanly, then dont buy that guitar. Where the neck joins the body,there should be no signs of it coming apart, or any indication of having been repaired roughly after the neck and body had become loose.
You might say to yourself, "oh I can fix the buzzes etc.. later", but even if it can be fixed... it will probably cost from $60-00 to over $100-00 to repair.
So it is safer to go to a store that stocks a few different makes of guitars and try them for yourself. If you are planning on taking lessons with a guitar teacher right away , then he will be able to recommend a guitar store that he trusts to sell you a decent guitar.
So, rather than just buying the first guitar that you see because it looks good, it is a good idea to check it over, because it really is so much more enjoyable and rewarding to practice on a guitar that is in good condition.

At intermediate level, the student will want to upgrade to a better sounding and a well crafted instrument. So here the price range will be around $400-00 to $2000-00. The craftsmanship and woods used to make the instrument will determine how much the guitar will cost. The main difference here compared to a beginners guitar is that solid woods are used, whereas the beginners guitar would have been made of plywood or laminated wood. The wood used to make a fine classical guitar is usually Brazilian Rosewood or Indian Rosewood for the back and sides and Cedar or Spruce for the soundboard . At the lower end of the Intermediate guitar range, the Soundboard (top) of the guitar will usually be made of Spruce or Cedar, and the back and sides made of plywood or laminated . As the price of the guitar increases, you will find that the back and sides will also be built using solid wood rather than laminated plywood. Some common manufacturers of guitars at this level are Admira, Yamaha, Maton, Alhambra, Suzuki and Matsuoka .