Local shop has a new (at least it looks new) WASR-10.  $499.

Good price?  Good gun?

over priced by a good deal. order one offline and pay the FFL transfer fee.
aimsurplus has them for 329. for 500 you can get a much higher quality AK if you want.
nothing wrong with the wsar in my eyes, small problems with cant, triggerslap and mag dimples.. but those arn't really big deals and the first two are easily fixed. the third is only an issue if you care.

No...

Get one from Classic Arms Around $300... I would get the side folder!

Good price is about $50.

$500 is beyond laughable but the dealer probably figures there's a sucker born every minute and sooner or later they'll wander into his store where he can tell them that special forces uses these in Afghanistan.

Spend your hard earned money on something you will be proud to own. For $500 there are MUCH better AKs out there. You might start by checking out the gunshows for an idea of what is available and for what price range. Once again check out www.atlanticfirearms.com