Hi everyone! Thanks for all the advice. So, I went ahead and purchased the Yaris today. I think it's gonna turn out to be a really good deal.
To start off, the cosmetic damage is pretty bad - the paint all over the roof of the car is peeling slightly, and on the hood. Lots of dents and scratches, and the paint is chipped in a few places. Of course, I do not care about any of this so long as the car's functionality is not affected by it.
So the car was claimed as a total loss by the insurance company of the last owner, however the title is not salvaged. It is a clean title. Apparently this can happen when the DMV's definition differs from what the insurance company says? Any who, the car fax were very clean, sans the hail damage. It appears the 1st owner took really, really good care of it in the short time he/she owned it.
Of course, I wasn't going to buy without a test drive and pre-inspection. The interior looks very clean, almost brand new. So no complaints there. I tested most all the electrical stuff myself and noticed no issues. The only 3 things that were wonky were the windshield wiper fluid dispenser was not working correctly, the front left blinker was out, and the driver side mirror was missing the outer plate on the back (this didn't effect the mirror's utility itself). As part of the deal, the dealer agreed to fix all of these. The blinker is fixed, and I am taking it back sometime next week once the parts come in for the windshield wiper and the side mirror.
I found a local mechanic in the area who had very high reviews on yelp/google. I actually called them beforehand to at least get some sort of a feel for them, and after the call I felt comfortable taking it in. In person, I felt even more comfortable - the head mechanic was very laid back, was extremely attentive while listening to my concerns and what I was looking for, and after the inspection gave me a thorough run down of every thing that he looked at. He said mechanically, the car looks fantastic - everything is original/manufacture parts, and they look brand new. Brakes are superb, no issues with transmission/oil, etc.
I also got a good vibe from the car dealer himself. He was extremely laid back, not pushy at all, and accommodating of every one of my requests. We chatted for a little bit about the car and he told me how a lot of people would come to look at it and freak out about the hail damage, even though he has it listed online everywhere that he has the car posted. And like I said, he had no qualms about taking care of all the issues I pointed out about the car.
Only time will tell, but all told, I think I got a really good deal on a solid car today that should last me for a long time.