How to get a "dreamy" guitar delay effect
The "dreamy" delay effect is possible to get in one of two ways.
Cheap guitar of the week #28 - Yamaha Pacifica PAC112V (with coil tap)
Some of these guitars have a coil tap feature while others do not. Fortunately, it's really easy to tell which models have the coil tap when you know what to look for.
Vintage guitar of the week #11 - 1990 Fender Stratocaster Plus
Yes, this guitar counts as vintage. It's 25 years old.