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Pawn shops, some used book stores. A place near me takes in used books, games, video's, DVD's and electronics for trade and sells them used.
But you need to decide what kind of eReader you want. Do you want a backlit screen, like the color tablets or an e-ink machine? Where do you want to get your ebooks, and what format are they in?
Not all formats can go on all machines.
any cheap Android tablet with Moon Reader+ (one of the best free reader apps on the Anderiod Market) makes a far better ereader than any of the Kindle/Nook/Sony hardwired things.
one sale a day usually has android tables for way under $100. (Google your way there)
All you need is at least Anderoid version 2.2-2.3