at the price point you are considering, you want to get the most value for your $$. for this reason i would strongly recommend buying used. kijiji, craig's list, your local classifieds, etc. from there, if it were me, i would approach it like this. for $400 or less what's the best i can expect? well, there's actually alot there. the squier classic vibe series sells in that range, used. there's the mexi fenders, too. both are great guitars and are very consistent. there are some used epiphones in that range, but those are hit or miss. some are great guitars. others....not so much. you definitely want to try before you buy.
ltd/esp makes some really cool guitars in this range if you're into the shredder thing. but here is the way i prefer. go korean. that means roxbury, dillion, indie.
these are great guitars, and you'll get the most for your money. i have an example of the first 2 and i'm saving for the last one right now.
have a look at the specs on this one
http://www.jsdguitarshack.com/roxbury_guitars/rx-80f/roxbury_rx80.html
i have one of these with a wilkinson trem on it. you won't get this much guitar for this price anywhere else, and i've looked. these guys are great to deal with, and he has 2 left.
lastly, carvin makes a kit you can assemble, and they are all on sale right now. i know a guy with one of these and it's an awesome guitar, and the kit wasn't hard to build at all. it had excellent instructions. check it out:
http://www.carvinguitars.com/kits/
good luck