Tangential to my interests as a DIY musician and recording artist, I also like to buy cheap guitars and fix them up with the intent of making them comparable to instruments that cost far more. Personally, I have never played a $2100 instrument that sounded seven times better than one that cost $300, as I tend to think the cost-to-sound ratio plateaus at a certain point.
I paid $90 for this instrument on eBay, new. Yes, Adam Duritz, I bought myself a grey guitar and play. It even came with a gig bag and a patch cord. The seller gave me a discount because the listing had incorrectly stated that it was a baritone. Out of the box, it was kind of shitty. The nut was terrible, such that anything on the first few frets was not intonated correctly. It also wouldn't stay in tune worth a damn, and the pickups sounded muffled. However, the body, neck and fretboard were decent, so I kept it. I then replaced the nut, the bridge, the tuners, and the pickups, all with off-brand parts at a total cost of about $60. I also used a jewelry file to smooth out the sharp frets. It now plays and sounds approximately as well as my actual Fender Telecaster for a fraction of the price.
My point is that you don't need to spend a lot on a guitar to have yourself a decent instrument. Sometimes it just takes a little bit of work.
