$150 should do really good for a bench grinder, so long as he isn't expecting a baldor industrial bench grinder
First and foremost, get an 8". The 6" grinders are good for alot of general work, but they lack the clearance between the wheel and the motor for alot of things. And you can wear the 8" down farther because its got more clearance to begin with. 8" wheels are wider too, much nicer to work with if you ask me.
I have a craftsmen 8" professional that came with a set of really nice work rests, a light mounted on top, a drill sharpening guide (that doesn't seem to work, I get better results free hand

) dressing tool for the wheels, and a little tool tray. All for less than $150. I use it to make knives, and have been very happy with it.Plenty of power, and it runs reasonably smooth after dressing the wheels. Have to say it was the roughest chattering SOB I ever used out of the box, but the wheels were out of round. A few minutes with the dressing tool and it was all set.
So take a look at one of those. I had lost faith in craftsmen and swore I would never buy another power tool from them again, but I got this one as a gift and its been a good tool.
Also look at Delta, they have an 8" similar to the craftsmen. I think it may have a bigger motor, about the same price range. They look really nice. I would probably give it a try over the craftsmen. All my other tools are delta and I've been very happy with them. The craftsmen is a good machine though.
Most will come with a coarse and a fine grit wheel already mounted. If you want to buy a wire wheel to go with it that would probably be nice, doing automotive stuff it might come in handy. You can check out some higher quality wheels, and also more grinders here:
www.woodcraft.com