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Kevinf,
I have been racing bikes, road and mountain bike for about 12 years now and have spent more money on bikes than I have on my car. Yet, to this day I can still remember the fun I had with my first used bike. I would say look for a Mountain Bike Forum in your area and check out the For Sale section. I have raced in Cali quite a bit and know they have a large bike community. I would recommend a used bike made in America. You can still get a life time waranty on the frame on most American made bikes. Trek is a great company and if you do live in Cali there are alot of local bike companies. I spent $50 on my first bike and it was great. But just like we do here with computers find out what your needs are first then go in that direction. I will check with some of my buddies and see if I can find a local forum for you. Where exactly in Cali do you live? And yes a whole bike loses it's value, but a frame can last forever. And if you buy a used bike with all the components for $100 and take care of it you can get alot of miles out of it.
-Matt
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