My son and I went looking at squire strats a few months ago, figured it would be no problem finding a used one. Started in the local papers and c-list, and had Ebay in the back of our minds as another option. After looking at about 5 "mint" or "like new" machines in person, (which were really rough or made up of various different guitars, he decided to buy new instead.
I'd be very cautious about buying a guitar on ebay from a private seller, usually they say they don't know much about guitars, and when you get it the neck has more curves than Pamela Anderson. Unless it was coming from someone with great feedback or a good return policy I'd still search locally or start with a decent chinese, japanese or mexican made one. Your daughter will never know the difference, and you'll save some cash in the end if she doesn't like playing.
Try long & Mcquade for a rental return, could save some $$ that way too.