I wouldn't consider any of the European brands, they're too expensive and cost too much to run. That rules out the Up. Asian brands, particularly the better-known and well-respected Japanese brands are a much better bet, which rules in the Echo. The Asian brands tend to be more reliable and cost much less to run. Another to look at in your situation is the Suzuki Alto. 

The recommended tyre pressures are set by Toyota with Australian conditions in mind, and they should generally be followed. It is possible, if you want, to increase the inflation pressure by a couple of psi, but inflating them as high as your service guy has been doing is going a little too far. It would still be safe, and it would probably improve the handling quite a bit, but it would also compromise the ride.

BUY a small car with a four-cylinder engine, and if you stick to the well-respected brands, such as Toyota Corolla or Echo, Nissan Pulsar, Mazda2 or 3, Hyundai Getz, or Honda Civic he should be a winner. Buy the car with the lowest odometer reading and in the best condition that fits his budget.