definently gotta second Ziadels reccomendation, altho it is a bit beyond your price range... maybe it would be in it if you got it without a scope?
my grandpa uses one of the RWS pellet rifles to take care of the squirrels on his property.
works like a charm, the most accurate pellet gun I've ever shot, it is a single shot, but even without a scope I usually get the squirrels on the first shot, just dont take long shots, keep it pretty close so you know you can hit it.
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