dustNbone said:
When I was a teenager I took my friends brand new department store MTB for a ride down the street and upon riding over a sewer grate the handlebar stem snapped clean off, leaving the handlebars in my hands but not connected to the bike anymore.
FWIW, the same thing happened under slightly different circumstances with the Columbia Comfort Bike 2005 that later became DayGlo Avenger. Bike being only a month old, the company replaced the stem under warranty, and I used the bike heavily (for heavy cargo, too, which it wasn't intended for) for years afterward. The only things that failed (that came with it) were abused well beyond their design, or modified by me without me knowing what I was doing. If I hadn't changed to semi-recumbent designs I'd probably still be riding it. (though the frame is now cracked at one of the seatstays from the wya I mounted heavy-duty cargo pod and rack to it, and carrying way more than it was intended to in it)
So cheap bikes don't necessarily have to be junk.
But they certainly can be: On the flip side, I've gotten quite a few "wally world" bikes via Freecycle, friends, etc., that were actually complete junk, or nearly so, with a few (flawed) gems here and there. Some of them had usable frames, crappy components, some had crappy frames I could bend with my hands, *and* crappy components (some of which broke while being removed from the frame), some had decent components but overly-flexible / soft frames, or just so heavy you could barely lift the bike with one hand (almost all frame weight).
I've also gotten pretty good bikes (including an 80's Nishiki) at Goodwill and other thrift stores for cheap, usually around $20, that usually just need new brake pads, and sometimes tubes and tires.
Mostly, though, I don't buy bikes for what they are as a whole. I buy them (or pick them up from Freecycle/etc), for parts I can use from them; wheels are usually usable, sometimes really good. Most often just need tensioning and truing (rarely already are, except on the occasional good bike like the Nishiki).