Have had some problem with ice dams on my garage roof which resulted in leakage through the roofing and into the soffitts below. Am planning on replacing the soffitts with a material that would not require any painting, either vinyl or metal. I think over the next few months I will have to replace all the soffitts on the house so as to minmize maintenance. Which material is going to be easier to work with and the most cost effective bearing in mind that this is a bilevel home with the street side being 2 stories high? Really can not afford to replace all the siding with vinyl or steel but doing the eaves and soffitts will greatly minmize the task of repainting. Which I will also have to do this year.
What would you suggest?

I would go with factory finished aluminum. I did my 2 story house with it over 20 years ago, and haven't touched it since. Vinyl expands and contracts more, and must be left more room to rattle around. I would also go heavy on the perforated sections. I did go back the summer afterwards and replace all the solid sections in the north side with perf to improve ventilation.

The solution to ice dams is more insulation and better ventilation. Remove all the old plywood or whatever from the soffit, and make sure air is free to flow up into the attic between the top of the wall and the roof sheathing. You may need to add ridge line vents too. Some heat and moisture will always leak into the attic. The heat will melt the snow, and the water will run down and cause ice dams. You want cold, dry air from outside to flow up across the roof and out the vents carrying the heat and moisture away before it can cause a problem.

You can cut either vinyl or the aluminum with tin snips or a circular saw with the blade turned backwards.