Either would work. I know my bike store bought my old Giant bike off me (it was only 3 weeks old) and promptly sold it at a very decent price. Yesterday when my DH was in to buy his Trek the bike store had a used Giant OCR at an awesome price-wrong size. My point? My bike store checks out all bikes before they buy them off customers and tunes them, etc, and sells them at awesome prices-it is rare to see a used bike in that store, thye are iommediately snatched up.
Also, this time of year there will be sales.
I think your friend should be able to get a very good bike for $500 or under.
Jennifer
“Live as if you were to die tomorrow. Learn as if you were to live forever.”
-Mahatma Gandhi
"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."
-Aristotle