Sorry Good Intentions, but Gerald Ratner's infamous remarks about his jewellery and prawn sandwiches spring to mind. You basically get what you pay for in this world, and there are no half-decent cello's around for this price. I don't think the white paint is there to hide anything bad, I think it was produced to look like that rather than being painted as an afterthought.
Perhaps a better way to obtain a cheap cello is to buy a starter cello second-hand, privately. Lots of people start out with instruments of around £350 to £500, but buy a much more expensive one quite quickly. There must be lots of Stentor II cello's lying around in attics, unplayed. Mine is! (though I am keeping it as spare, so it is not for sale). I bet you could pick one of those up for very little money. There is a website
http://www.musicalinstrumentsales.co.uk/ that might help. Or ask around within your local music-making community.