For $500, look at your local used market. $500 can buy a great guitar used. It puts you right in the range of Mexican made and possibly Japanese made Fender guitars on the used market.
Does that $500 include money for an amp as well? Also, what types of music are you interested in playing? $500 puts you right in a very nice sweetspot in the market. Lots of nice epiphones, G&L tributes, entry level Gibsons, entry level Fender, high end squier, mid range Ibanez and Jackson guitars fall into that price range.
With a budget like that, I'm sure we'll be able to help you pick a guitar you can love and grow with!