You don't say what model it is, but as ever from a dealer, £5,500 is way too much for a 2006 Yaris. Like the other answer says I'd also be wary of a car that's only done 5400 miles in all that time, the average mileage for a car that old would be about 30-40k.
A Yaris is a good car, but that one doesn't sound like much of a bargain to me.
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