Well, I'm biased. I have a 1991 Honda Civic Hatchback, so yours seems new to me; I think you've got at least eight more good years in it. And I bet they don't have those stupid automatic shoulder belts anymore by 1996, although you might still need both hands to lock the driver's door. So if you could make a few somewhat but not exhorbitantly expensive repairs to it, it might not be irritating at all anymore. All of that plus a new stereo to make you ideally happy? Sounds like a good deal to me!
(And keep the old stereo so you can switch it back when you sell or if the new stereo doesn't work out for some reason.)
Also, it's good for the environment to keep re-using your old car. Also, I bet it's cheaper to repair than the newfangled hybrids will be. And the mileage probably isn't even that much worse.
Also, I'm generally opposed to using all your savings if you don't have to. And I like to have my savings split up in my head (by which I mean in a spreadsheet) as to how much is for emergencies, how much is for the next car, etc. Which doesn't mean I never borrow from one category to pay for another category, but it makes it easier to tell myself that I can afford certain things once I have enough in the appropriate category.
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(And keep the old stereo so you can switch it back when you sell or if the new stereo doesn't work out for some reason.)
Also, it's good for the environment to keep re-using your old car. Also, I bet it's cheaper to repair than the newfangled hybrids will be. And the mileage probably isn't even that much worse.
Also, I'm generally opposed to using all your savings if you don't have to. And I like to have my savings split up in my head (by which I mean in a spreadsheet) as to how much is for emergencies, how much is for the next car, etc. Which doesn't mean I never borrow from one category to pay for another category, but it makes it easier to tell myself that I can afford certain things once I have enough in the appropriate category.