This is just a simple guide, answering a few basic questions.

Disclaimer: Let the buyer beware. Please do not hold me responsible if you have a bad experience with a cello purchase.
I am merely giving some free advice and pointing you in the general direction in which to go.
You must be responsible for your own actions and difficulties.

I. How much money does a decent cello cost?

First time buyers are shocked to find that even an inexpensive beginner's cello will cost about $1000.00 (to say nothing of the bow, which will cost at least several hundred dollars). It is possible to purchase a "toy cello" for about half that price, but they are stamped out of plywood, improperly glued and finished, with slipping tuning pegs. They sound about as good as a cigar box with rubber band strings. It is possible to purchase a plastic bow for about $40, but it would be better to get a genuine brazilwood or pernambuco bow that will give good response and service for years and years. A cello ought to be hand-carved maple and spruce, not plywood stamped-out by a giant machine. This is crucial for sound quality. It needs to be carefully glued together with the proper sort of glue, in case it needs to be taken apart for repairs some day. It should be finely varnished and pleasing to the eye. The fittings, especially the fingerboard and pegs, should be made of ebony or rosewood. I have seen fingerboards made of cheaper woods, stained or painted black. It is impossible to play, or learn to play properly with such an instrument, because of the additional friction between the painted fingerboard and the fingers of the left hand, especially as the cellist shifts from one position to another. The tuning pegs must be made of ebony, and precisely fitted, or the instrument will constantly slip out of tune. The angle of the fingerboard, the planing of the fingerboard under the C string, the precise placement of the nut, the bridge, and the height of the strings above the fingerboard are all crucial dimensions, and must be set-up by an expert, or the cello will be virtually unplayable. The bridge must be made of the proper grade of maple, properly cut with regard to the grain of the wood, and perfectly fitted to the belly of the cello. Inside the cello, the soundpost must be correctly fitted and positioned, and the bassbar (which one cannot see at all without opening up the cello) must be correctly positioned and glued to the belly of the cello. The strings must be of a decent quality, and of a character to fit the particular cello in question; and they must be accurately positioned on the bridge, with correct spacing and height. Cellos that come with a set of steel strings will need fine tuners installed on the tailpiece, and these need to be installed correctly. The endpin should be easily adjustable. Finally, there should be an overall aura of good craftsmanship. There is a difference between a cabinet maker and a carpenter. The construction of a stringed instrument must be done by a person who is even more detail minded than a cabinet maker, or the resulting instrument will not play well. The cello will not play well, and it will not sound good, unless all these things are done right. All of these factors make it necessary for a good beginner's cello to cost about $1000, minimum.