The Fender Stratocaster HSS is a versatile, well made, stylish and affordable. You can usually find them new for less than $500. The ‘HSS’ designates that this model Stratocaster has a humbucker in the bridge position and two single coil pickups in the middle and neck position. This configuration is going to give you a lot of versatility. The humbucker in the bridge is going to allow you to crank the distortion for metal tones that you would not be able to get in a typical Stratocaster, while the two single coil pickups let you dial in the classic Fender clean tones. There is a huge market for the Fender Stratocaster and they hold their value well. They also come in a large variety of colors. The contoured necks make them easy to learn on for new guitarists. From a value standpoint, the Fender Standard Stratocaster is arguably one of the best guitars you can buy.
2. Epiphone Les Paul Traditional Pro
For someone who wants to play rock, metal, hardcore or punk, the Epiphone Les Paul Traditional Pro would be my number one recommendation for a guitar under $500. Around Christmas time, you can often find these guitars for $299 at many retailers like Guitar Center and Musicians Friend. Epiphone made a ton of these guitars and the market is flooded with Traditional Pro models that are in excellent condition for around $300.
A few years ago, Epiphone swapped out the humbuckers they had been using for a new pickup called the “Probucker” which was modeled closely after the Gibson Burstbucker. These new Probucker pickups are amazing. There are many side by side, blind comparison videos on Youtube where professional musicians cannot tell the difference. In my opinion, the Epiphone Les Paul Traditional Pro is on par with some of the Gibson tribute models that cost 3 times the price. The only downside is the lack of color options on this model. I think the ‘Red Wine’ finish looks best because it shows off the wood underneath.
In the past, Squier is not a name that most serious musicians would associate with a high-quality instrument. There are some highly sought after Japanese Squier models, but for the most part, Squier has a reputation for making beginner-level guitars with a lot of cost-cutting measures. That image has changed dramatically in the past few years. There is nothing but praise online for the Squier Classic Vibe series. The Classic Vibe Telecaster is an amazing sounding instrument that many musicians say rivals the American Telecaster which costs 4 times the price. These instruments hold their value very well and it’s difficult to find them on the used market for much less than they cost new.
Schecter is a Korean guitar company that makes a fantastic guitar. In my opinion, the Schecter C1 is the easiest and smoothest guitar to play on this list. Schecter some magical manufacturing techniques to round the fret edges on their guitars that even the big American guitar companies can’t beat. The body shape is nicely contoured and it makes playing up and down the neck a breeze. The cutaway body shape allows for access to the higher notes for soloes and leads. Aesthetically, the C1 is also one of the best-looking guitars on the list and has the most color options. This is a shredders guitar and they are made for metal. The C1 comes is a variety of pickup options, but I recommend finding a model with active pickups so you can blow the doors off the barn. Some of the C1 Hellraiser and Platinum models come with genuine EMG pickups and are easy to find used for less than $500. The weight of the C1 can vary pretty widely between guitars depending on the specific model. I find that you get a little more sustain on the heavier guitars, while the lighter models seem brighter.
The bad news is that Schecter guitars do not hold their value very well. The good news is that you can often find the C1 model used and in excellent for around $250, often with a hard case. This is a great guitar to pick up used on Craigslist for a fraction of what they would cost new.
My Gretsch 5120 is one of my favorite guitars. Despite the fact that I own a few significantly more expensive Gibson and Fender guitars, my Gretsch 5120 easily finds it’s way into my regular rotation. They look and sound amazing. I can’t play like Brian Setzer, but I can look like him. For 50’s rock tones, Beatles songs, rockabilly, bluegrass and country music, the Gretsch 5120 would be my first recommendation for a budget guitar under $500.
The Gretsch 5120 has an MSRP of $799, but they regularly pop up new for around $500 on Slickdeals at some of the major retailers. They are fairly easy to find on the used market for $500 on Craigslist and Reverb.com with a hard case.
I would caution a new guitar player that this guitar can be a little frustrating. Many of the 5120 models come with a floating bridge which can throw you out of tune. The plastic nut will also need to be replaced or it will be nearly impossible to keep it in tune. The Gretsch 5120 is finicky, but with the right setup, is a fantastic guitar for a serious musician on a budget.
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