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I got a just-below-premium 40-gallon heater for $360 or so. I forget what brand it was. It had a 5-year (or was it 10-year) warranty and beat the heck out of our old heater for ponying-up hot water for the first AM shower.
It helped to have a friend help carry it down to the basement.
No doubt there are good local (non-chain) plumbing-specific places to look in your area, with good recommendations, too.
You might also want to consider tankless water heaters. The price for one that will support one major use at a time is about the same as a top-rated 40-gallon heater.
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