Best Electric Guitars Under $500
The under-$500 segment is the best it has ever been. Today’s budget electrics are genuinely gig-worthy — far from the unplayable toys of decades past. Here’s what to look for and which families consistently deliver.
What “under $500” buys you now
At this price you get solid tone woods, reliable hardware, and pickups that sound good with minimal upgrades. The biggest variable is the setup: a quick professional setup turns a good budget guitar into a great-playing one.
Families that consistently punch above their price
- Squier Classic Vibe — superb Strat/Tele recreations, a perennial value benchmark.
- Epiphone (Inspired by Gibson) — Les Paul and SG tones for a fraction of the Gibson price.
- Yamaha Pacifica — legendary beginner-to-intermediate workhorse, brilliant build.
- Harley Benton — astonishing spec-per-euro, the ultra-budget champion.
- Ibanez — fast necks and versatile pickups, great for rock/metal.
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How to choose between them
Match the guitar to your style (single-coils for bright/clean, humbuckers for rock), prioritise comfort, and don’t ignore the unglamorous stuff: tuning stability, fret finish and electronics. A model that stays in tune and feels good beats one with a flashier spec sheet.
Why a setup matters more than the badge
The single most important thing to understand about budget guitars is that the setup often matters more than the model. A “setup” means adjusting the action, intonation, neck relief and nut so the guitar plays easily and stays in tune. Two identical guitars off the same production line can feel worlds apart — one fresh from a rushed factory line, the other properly adjusted. A guitar that plays badly out of the box isn’t necessarily bad; it usually just needs an hour of adjustment.
Budget for a professional setup (often modest in cost) when you buy, or learn to do the basics yourself. Owners consistently report that a good setup transforms a cheap guitar from frustrating to genuinely enjoyable, which is why seasoned players say “just get it set up” more than almost anything else.
New versus used at this budget
Under $500, the used market is a goldmine because guitars hold up well and depreciate. A used guitar that cost $700 new can fall comfortably into your budget while offering better woods, hardware and pickups than a new guitar at the same price. The catch is that you need to inspect it — check the neck is straight, the frets aren’t badly worn, the electronics are quiet, and nothing rattles.
Buying new gets you a warranty, a guaranteed clean instrument and the option to return it, which is reassuring for a first purchase. If you’re confident inspecting a guitar (or can bring someone who is), used stretches your money furthest; if you want peace of mind, new from a shop with a return policy is the safer route.
Match the guitar to your genre
At this price you have real choice, so let the music you want to play guide you:
- Blues, funk, country, indie, classic rock — single-coil guitars like a Squier Classic Vibe Strat or Tele, or a Yamaha Pacifica for extra versatility.
- Rock, hard rock, metal — humbucker guitars such as an Epiphone Les Paul/SG or an Ibanez, for thickness and sustain.
- A bit of everything — an HSS layout (like many Pacificas) or a coil-splitting humbucker guitar gives you both worlds.
Prioritise a model that stays in tune and feels comfortable over one with a flashier spec sheet. Tuning stability, fret finish and a neck you enjoy holding will keep you playing long after the novelty of extra features wears off.
FAQ
Are cheap electric guitars any good now?
Genuinely, yes. The under-$500 segment is the best it has ever been — modern budget guitars from Squier, Yamaha, Epiphone and Harley Benton are gig-worthy instruments, not toys. The main thing they benefit from is a proper setup.
How much should I spend on my first electric?
Around $200 to $400 buys a genuinely good first guitar, leaving room in the budget for an amp and accessories. Spending a little more than the rock-bottom option usually gets you noticeably better playability and tuning stability, which keeps beginners motivated.
Should I buy a guitar-and-amp pack?
Beginner packs are convenient and good value, bundling a decent guitar, small amp, tuner and accessories. Just check reviews of the specific guitar in the bundle, since that’s the part you’ll keep longest — the amp is easy to upgrade later.
Spend wisely
Leave room in the budget for an amp and basics — see our best home-practice amps and essential accessories. New to buying? Start with how to choose your first electric guitar.
