>>1363006>>1363144(cont'd from last)
So those components I mentioned cost £84 in total ($105.59). And I've actually spent probably double that, at least, because there are other things I replaced, although they were sort of my fault because I converted the bike to single speed and lost some of the gearing stuff (shifters, front derailleur) so I had to buy that stuff again. But ALSO my bike still has problems that I should fix - knackered bottom bracket and two worn sprockets on the cassette.
So yeah, old bikes can have problems. But at $125, the alternative would be something like pic related, the cheapest bike that Decathlon do (apparently Decathlon sell in the US too; they're a French company). Although even pic related is $163.40 USD so it's a bit more than your $125. And it only has 6 gears (only one chainring at the front). I guess it's up to you what you want to get - I'm sure this cheap new bike would have its own shortcomings.
But basically yeah I think old cheap road bikes are great for getting around town if that's all you need to do, especially if you're a poor student like I was when I got mine.