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I would definitely get a new one especially since you'll want CD capability so just find a good head unit for cheap around 100 isnt bad I've got an Alpine and kenwood is good too and jvc arent bad. You dont really need an amplifier unless youre getting subs so don't bother unless you have tons of money to spend, I dont have an amp to power my speakers, just the subs and my speakers are still unreal and can hit great highs and mids.
So try to get speakers and a head unit for sure because it will make a huge difference, look at crutchfield because they always have some deals on stuff. And other good speakers are boston acoustic, polk audio, and kenwood
Using an ipod doesnt mean its not as good quality, its all about where you connect it. My head unit connects to the ipod through the USB port instead of the auxiliary port which still isnt that bad, and my music sounds crystal clear with it. Get your head unit first and then your front two speakers and whatever else you feel like spending money on after that