Peavey Foundation and Dyna basses can be had for under $200. That's as good a deal as you're going to find.
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I highly recommend the Squier CV series basses; I have the 50's P-Bass. I have played the other the basses in the CV series and liked them all. Great bang for the buck for ~$300 brand new.
I can give a definite big +1 on the Squier VM's. I've heard way more horror stories about MIMS than Squiers. I can only repeat the common wisdom of trying before buying, but personally, I would consider a new Squier before a used MIM.
I think it depends on the bass. Hell, if he got a used Squier VM, he'd be doing well, also. Regardless of what OP buys, going used gives one more bang for the buck.
In any event, try before you buy.
Seems like since the unarguable improvements and quality of the recent Chinese built Squiers, especially the Vintage Vibe series, MIM Fenders are viewed suspiciously. Personally I think the quality shift in MIM occurred around 2000, when Jazzes started having the larger (American) Standard size bridge pickup rout. The 50's classic P is a fantastic instrument IMO, even compared head to head with a 57RI.The American built turning point seems to be post 2008, with the high mass bridges, graphite rods. etc.,though many still prefer the old style low mass bridges. Nice MIM J and Ps are available used in the 400-500 range for sure.
I was in the same position looking for a bass around $400. I looked at Craigslist, eBay, and the TB classifieds. I found some stuff on Craigslist, but not in my area, found stuff on eBay but it was all above my price range for what I wanted and shipping was a killer. I was looking for a P/J Fender and after a few weeks of constant looking I found that the TB classifieds were the place to be. Found this a few days ago for under $400 shipped, and while I am not into relic'd guitars, I basically found exaclty what I was looking for.
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Still being shipped, so hopefully it's as good as the seller made it out to be. All in all, I think the TB classifieds are the best place to find a used Fender that will be close enough to what you are looking for. Now I just need to satisfy my amp GAS. The Genz Benz Shuttle 6 combo or the Jule Monique is killing me...