I would look at the Tamiya ta-05, Its around $125 as a kit althogh I've seen them around $110 at some places. It has huge amounts of upgrades avalible and it really nice for what you get. Its the best thing around for the price.
I was going to mention the Tamiya Mini Cooper RTR, but the OP didn't seem interested.
The mini is a great first time RC basher/racer.
And...it's 154 bucks which includes everything but stick pack batteries and a charger for the stick packs.
The biggest prob with hobby class RC vehicles and young kids is the "wrenching factor". The kids break stuff and it takes time to get it fixed. The kids can get disinterested because it takes some time to repair....So finding a vehicle that is rough and tough but yet fast and fun is crucial.