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Cheap Electric Guitars

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Ibanez GRX20
Squier by Fender Bullet Strat
Epiphone Les Paul Special II
Fender SE Special Strat
Dean Vendetta XTM
In the world of guitar, cheap doesn't have to mean low-quality.
Good sound and tone
Sexy, appealing design
Professional finish
Occasional fret buzz
Mediocre Pickups
Ibanez is renowned for good quality and high standards and the GRX20 does the reputations justice.  This guitar features a tremolo arm and a three-way pickup selector.  It has good tone and a sexy design.  The design and bodywork speak of professional craftsmanship.  Advanced players will probably want to replace the pickups with more a expensive set, but for beginners the shipped model is perfect.
Just look at that price!
Easy Action
Good Finish
Muddy tone
Not for intermediary players
Squier is a well-known guitar brand owned by Fender, and delivers quality entry-level instruments.  This Squier Bullet Strat has an easy action and good finish and delivers value for the price.  Some owners have remarked that it sometimes deliver a choppy/muddy tone.  This is probably the cheapest electric you'll find.
Good sound and tone
Very versatile instrument
Sturdy, appealing design
Doesn't stay in tune forever...
The Epiphone Les Paul Special features humbucker pickups, one volume and one tone knob.  This guitar has a very versatile sound and can be used in a variety of different musical styles.  It has a sturdy design, sexy chrome hardware and nice sunburst finish.  It's quite a heavy instrument which might be a problem for younger players
Delivers that classic strat sound
Solid Body, attractive design
Perfect for beginners
Included Amp is mediocre
Doesn't stay in tune forever...
Another Fender:  This package features a Fender SE Special Strat guitar and a Squier SP-10 Amplifier.  The guitar has a solidly built body and appealing design.  Most importantly, it delivers a classic Strat sound with which you'll never go wrong.  This package will be ideal for most new or young players.  The included Amp is not the best quality, but will do for starters.
Great rock sound
Very versatile tone
Good sustain
Perfect beginner guitar
Eeemm.. it's not a Gibson?
The Dean Vendetta XMT delivers a variety of sounds for different genres.  Its two humbucker pickups produces good sustain and the guitar has a nice 'growl' to it.  Good for hard rock type music.  It has 24 frets, a volume and tone knob and a three-way pickup selector.  An ideal guitar for an inexpensive price.
If you know of any cheap electric guitars I should include in this list, or if you spot a wrong price, please let me know
Ibanez GRX20 Electric Guitar Black Night
Squier by Fender Bullet Strat with Tremolo Fiesta Red
Epiphone Les Paul Special II Electric Guitar Heritage Cherry Sunburst
Dean Vendetta XMT Electric Guitar with Tremolo Satin Natural
Fender SE Special Strat with Squier SP-10 Amp Value Pack Black

If you know what to look and listen for, you can find a quality instrument for a budget price.  Electric guitars have lower action then acoustics which is great for freshman fingers.  The lower the action, the less amount of pressure you have to apply to the string to have it resonate clearly.

These cheap electric guitars have been handpicked as decent entry-level instruments that won't break the bank, but have quality design that will deliver decent tone.

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