Are steel or alloy rims better?

I just bought a base model Ford Escape. I don't need a whole lot so this car fit my and my family's needs fine. It has some pretty ugly steel wheels and plastic covers though and driving wise I can't really tell a difference but I'm trying to decide if I should buy rims instead?

I wouldn't bother. Ok they look good, for a while, until you kerb them a time or two. There's no particular advantage to alloy rims. You can buy covers that look just like alloy rims anyway.

You can now get chrome looking wheel covers, just use them during the summer

Traditionally, the advantage of alloys was to reduce "unsprung mass" and that results in better roadholding.

Buy alloys on modern road cars are designed for looks alone for the most part, and in order to maintain the same strength as a tough but ugly pressed steel wheel are not uncommonly so beefed-up that they weigh more than the steel rim.

So stick with the cheap steel wheels and just replace the wheel covers every now and again when they get kerb damage. That's vastly cheaper than having to replace or refurbish chewed-up alloys.