Your lower cost dog is very likely going to cost you more long term in health issues and you also won't be supporting someone who obviously cares very little about this breed. This woman is most likely either a backyard breeder, a broker for puppy mill dogs, or a puppy miller pretending to only sell cavaliers. None of these is someone you want to go near. Many of our board members have experienced terrible heartbreak in getting sickly puppies from such people.
The sham registries are there not for producing good health pet quality puppies as an alternative to the real registries but because shoddy breeders cannot get the better quality dogs to breed and also fully intend to dupe unwary buyers into thinking these meaningless registries actually confer some kind of quality mark and health guarantee on the dog. They don't -- just the opposite. These registries only exist to make money off the shoddy breeders. Which they do. But their 'registration' means absolutely nothing.
People here will be happy to help you find a better breeder.
Also please consider that this is a breed that is prone to some potentially costly health issues. If a few hundred dollars matter a lot in purchasing cost, have you considered how to manage potentially large vet costs? For any dog this is always a central consideration but especially so with a purebred -- you need to pick an excellent health focused breeder and need to be able to manage possible health costs/insure the dog.
The Library section has some really good links about what to consider when finding a dog, what to ask the breeder as a minimu, what health certs to be shown, health issues, etc. Sounds like you are getting some good reading done now and I'd be sure to have a good look over all that material.

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