Originally Posted by: Just.TreyBudget is #1.
#2 is fit.
#3 is style.
I say this because in the acoustic guitar world you certainly get what you pay for.
Not saying cheaper guitars do not play well because that isn't true. It is just that when you move up into higher priced guitars you move into better woods (solid wood vs plywood) better material (bone nut vs plastic), ect.
I would look at a OM or OO size as they can be more versitile. I know you want to play classical but I would shy away from a classical guitar for a first guitar. They tend to have very thick necks, wide flat fretboards, a much higher action and they are really only suited for classical guitar. Should you buy a classical guitar then decide that you want to play something more traditional adjusting the string height will not be easy, or cheap. Selling a classical is more difficult as well.
If you are a smaller framed person the OM/OO, or even OOO or Parlor guitar can be a good fit. My wife plays a parlor as she is 5' and it fits her quite well. Some smaller bodied guitars are well suited for jazz, blues, folk/rock,country, ect. Some are better voiced for fingerpicking, while others are more strum oriented. You can play classical music on a standard acoustic, some you can even tie nylon strings too, I know some Taylor guitars you can.
If I were a new guitarist I would look @ Eastwood, Blueridge, Seagull, Taylor Baby Taylor, and the Guild Waverly line. These are all made overseas (not sure about the Baby Taylor?), but very well made and inexpensive (as acustics go). If shopping on-line I would look to a shop that has a good return policy too.
Another tip is do not rush into buying the first "pretty" guitar either. Listen to sound clips, read forums and reviews. As forums go there are plenty but one commonality is there are many elitists who post on them and they can be very brand loyal. However there is a lot of good advice on them too.
Consider buying used too. Reverb is good place rather than an auction site just make sure they have a good return policy and reasonable shipping costs. Do not be afraid to "Make an Offer either :)
Good luck!
Thank you for replying as well! This was so detailed and informative (which I love) I will do more research with both information. I'm 5'6 but small lol so I'll look into OO since I'm still unfamiliar with the terms. And I promise I won't buy the pretty guitar lol. Thank you again for your input!!