Well, I don't know all your particulars, such as how far is your commute, how much are you willing to put down, etc. So again, just generally speaking for a younger guy in your situation, about to start a family, I might be looking to hold on to as much cash as possible instead of tying it up in a "large" down payment on a car. That's why a 2-3/yr lease putting little to nothing down, on a new car with warranty isn't a crazy idea. Some leases include regularly scheduled maintenance, although that tends to be with vehicles in the $40K+ range. Again, not saying outright purchase wouldn't work for you, just that I would not be quick to rule out leasing. But with employer paying $300/mo, either way you're way ahead of the game...congrats and best of luck.