Speaking of cheap nose cones, I have obtained very good results by shaping scrap packing styrofoam and covering it with paper-mache. I was completely blown away by how strong they become after just a few layers of paper. Once built up to the desired thickness/strength, finish with your favorite lightweight wood filler. If you want an even stronger surface, mix up some thin, slow-cure epoxy and paint it on.
The styrofoam is easily shaped with 24-50 grit sandpaper. Switch over to 100 grit and you'll get a nice smooth surface to apply the paper. With a little bit of practice, you can freehand a perfectly serviceable nose cone. The foam and paper mache sand so easily that you can easily turn them using a drill press as a makeshift lathe. While I have not tried it, an extra set of hands and a hand drill will probably work in a pinch.
There are two ways that you can chuck the nose cone for turning:
1. Make an adapter chuck using a piece of steel rod that is the maximum diameter that your drill (press) chuck will accept and approx. 5 inches in length. Cut two plywood centering rings to center this rod in your body tube. Mount this in a section of body tube approx. 6 inches long. The rod should stick out about 2 inches or the depth of your drill chuck. Wrap the shoulder of your nose cone with masking tape for a tight fit. If it slips, a hose clamp will secure it fully.
2. Larger cones will need support at both ends. In this case, you will want a wooden dowel running the length of the NC. Use two centering rings to support this in the nose cone base/shoulder. The dowel should extend 2" beyond the end on the base side to fit in your drill press chuck. The other end should extend roughly 1" beyond the desired length of your cone and be sharpened to a point at approx. 45 degrees angle. Use the sealed bearings from an old pair of roller skates, roller blades, or a skateboard to allow the tip end to spin freely. Make a small base plate the size of your drill press table to hold the bearings and clamp it to your drill press table. Raise the table to secure the pointy end of the dowel into the inner race of the bearings and lock it down.
You may run into problems if you use a soft dowel and tighten your drill press too tightly as this will gouge the wood and send things off-center. The use of a brass sleeve, slit with a dremel tool, should solve this problem but I have not tried that yet.
In any case, the cost to make these cones is essentially zero. You are looking at the cost of some glue and maybe a small section of dowel. They do require some time and effort, but along the way you learn a lot of the skills required to fab a Level 3 nose cone -- the only difference is the addition of fiberglass.
The best part, though, is that they can be made in any size, allowing the use of recycled cardboard tube cores thus reducing overall cost even further.
Roll your own motor mount tubes, cut your own fins and centering rings from 5.2mm luan flooring underlayment (ten bucks for a 4x8 foot sheet) and now you have a complete airframe for almost no cost.