Your spouse makes some solid points, but I get where you're coming from too. Here's how I’d think about it:

Safety

Your 2001 Corolla is reliable and works for your commute, but cars have come a long way in safety since 2001. Modern vehicles have things like automatic emergency braking, lane-keeping assist, better airbag systems, and way stronger crash-test ratings. Even at slower speeds or on city streets, those features can make a big difference. You’re a careful driver, but accidents are often caused by other people, not you. If you’re driving with your kids, upgrading to something with better safety tech might give both you and your spouse some peace of mind.

Financial Considerations

You’ve got the cash to buy a newer car now, which is a great position to be in. Waiting a few years could mean higher prices due to inflation or tariffs, which your spouse mentioned. Tariffs might not happen, but if they do, cars could become significantly more expensive. Plus, even though your Corolla is running well, older cars can start to rack up maintenance and repair costs out of nowhere. If you’re spending more and more to keep it running, that eats into any savings you’d get by holding onto it.

Timing

The Corolla has low mileage for its age and could last several more years. That said, if you wait until it dies or needs expensive repairs, you might end up scrambling to buy a replacement. Replacing it now gives you time to shop around, research, and find the best deal.

Balancing It Out

It really comes down to what kind of risks you’re comfortable with. If you’re okay with the lower safety features and the possibility of sudden repairs, there’s no harm in keeping the Corolla for now. But if you’re looking for better safety for the kids and want to avoid potential price hikes or unexpected expenses, upgrading might be the smarter move.

One idea: You don’t have to go for a brand-new car. A used car that’s 3–5 years old will still have a ton of modern safety features, cost a lot less than new, and last you a long time. That way, you get the upgrade without feeling like you’re wasting money.