The 'great used guitars' tend to be regarded as collector's investment commodities
and priced way beyond the aspirations of average and low income guitarists...

yeah, maybe if you live in the USA you might occasionally still stumble upon
old fellas living way out in isolated rural communities
who have no concept of the current market value
of their old tucked away under the bed unwanted Gibsons /Fenders /martins etc..

and may willingly trade them for a bag of chewin tobacca and a set of new tyres...


but that never happens in the UK and mainland Europe.

But luckily, there are still reasonably affordable bargains to be found
on 20 or 30 year old excellent quality Japanese & Korean guitars...


As for over production of new guitars, can't disagree... that's the inefficiencies of capitalism..

..but while the factories are blindly churning out perfectly acceptable new instruments
and I can find the overstock discounted amazingly cheap on ebay...