In this budget, you can get a solid tool that will be enough not only for DIY mechanic purposes but also to run a car shop or used car checks. Some may be a little over the $500 mark, but I am including discount coupons with each that will decrease the price very close to this budget.
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Quick recommendations

Thinkscan 689BT
Thinkcar Thinkscan 689BT does it all. You have full-system scan/erase faults and data + all the service and coding features you might need as a DIY or semi-professional mechanic.
(Use “CARHACKER” for 10% OFF on official website)

Mucar VO7
It’s one of the cheapest scan tools on the market but it does everything you need, even more advanced functions like ECU coding or OEM functionality
(Use “CARHACKER” for 10% OFF on official website)

XTool D7
Simple to use, packed with advanced features like ECU coding and with a wired connection, you don’t even have to charge it often.
It will charge itself when connected to the car.
(Use “CARHACKER” for 10% OFF on official website)

Thinkscan 689W
You can save a little by getting 689 in the wired version.
(Use “CARHACKER” for 10% OFF on official website)

XTool D8S
Xtool D7 is already solid, but this one adds even more service procedures and most importantly topology mapping.
(Use “CARHACKER” for 10% OFF on official website)
My insights after testing 100+ OBD2 tools

I’ve tested literally hundreds of OBD2 scanners, so let me tell you why I find these the best value for money.
1. Thinkscan 689 BT/Wired

As a DIY mechanic myself If I bought only this scanner, it would make up for 95% diagnostic tools I have in the garage combined.
And biggest plus is having free lifetime updates, so always up to date software without additional payments.

One of the best scan tools I have tried, for more information + $99 OFF discount code visit the official website.
2. XTool D7

I was surprised with the newest 2025 D7 version as now it comes with ECU coding. And that was the only thing that was missing from previous versions as it has a lot of service procedures (36), works with all modules, and provides solid vehicle coverage.