Where to save for a car?

I've seen people say that if you don't plan on using the funds within 5 years its better to invest it, but I've also seen people say the volatility of the market isn't the best for sinking funds like a car.

I have a 2021 Toyota Corolla, it was bought new and outright thanks to my dad and grandpa (very grateful to them for this). I've had it for 4 years, I'm hoping to have it for at least 5-7 more years and don't doubt the reliability of the car, but I've been saving about $400 a month for a new car whenever I do need to get a new one. Given that HYSA rates are currently around 3.25%, is keeping these savings in a HYSA a bad idea? I've been keeping it liquid because you never know what can happen, but I keep questioning this and would love some input.