I just picked up a used (barely) Jimmie Vaughn Signature Strat + Roland 15W Cube for 400 cash out the door at a local "small" dealer.
I also bought a (Fender) Squire Strat with the same 15W cube for $280 out the door at Guitar Center.
Always negotiate. Even Guitar Center negotiates (they took $40 off the squire and threw in a gig bag).
Don't forget about a stand too. $20 can get you a nice stage stand.
My suggestion - to be specific - is to get a used (or a deal on a new) Mexican Strat (make sure it has nice fret ends) - you should be able to get something for under $320 if you are patient (I waited 3 weeks for the Jimmie Vaughan to show up). While you're being patient check out places like Music Go Round for a used amp. You should be able to find something reasonable for under $60. Add in another 40 for extras (picks, strap, stand, extra strings) and you're coming in under 400 with a pretty nice setup.
Good luck!
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