Honestly, I think someone’s bullshitting you. I’ve never seen a BRAND NEW Squier even close to $500, and a quick look at Musician’s Friend confirms – there’s nothing brand new there in the Squier Strat category over actually $400.
You get higher than that, you’re treading too close to low-end Fender territory, and they wouldn’t allow it. Plus, that one has a chunk out of the paint right near the jack.
In fact, here’s the same quitar – Squier gold logo, affinity (which I see on the headstock of yours) brand new for $230.
https://www.guitarcenter.com/Squier/Affinity-Series-Stratocaster-HSS-Limited-Edition-Electric-Guitar-Ice-Blue-Metallic-1500000222391.gc?cntry=us&source=4WWRWXGP&gclid=CjwKCAiAlb_fBRBHEiwAzMeEdtgRgCm1ShecdGRx6E6U6-ERnPw4bsJ8qqvC6eMG6eCUgkVThUoFtRoCH0oQAvD_BwE
Someone’s trying to make you a sucker, bud. Don’t do it.