95% of the time with instruments, you get what you pay for. every now and then you find an amazing deal (those ibanezes I suggested cost right around what it costs to make them somehow), but deals like that are rare.

you are not going to find a good or even decent new guitar for $150 - $200. that being said, look at pawn shops. pick an afternoon, call a bunch asking what kinds of guitars they have, drive around and try them out. you have to decide a lot more quickly with a pawn shop than with a regular dealer, but you can find amazing deals. one time I found an ovation legend for $500 in mint condition and I regret not buying it to this day.

anyway long story short, if you want to spend that little and get a quality instrument, you're going to need to get creative. pawn shops, garage sales, classified ads, etc.