TLDR

Bought my daughter in law a Mk 1 auto Yaris 1999 four years ago .

Its been brilliant and everything still works including the air con. Just needed routine servicing.

Early ones up to 2001 built in Japan. Later ones built in France with MMT gearbox which failed on her mothers Yaris.

Finding one is going to be difficult but the Yaris Verso was voted the most reliable car that Which magazine tested

Main question on whether or not a MK1 Yaris is too old. If it is in good condition, the MOT history and service records points to it having been looked after, go for it.

The Aygo, well first off, it is one of a trio of cars mechanically identical but with minor styling differences, the other two being the Citroen C1 and the Peugeot 107/108. But, I really wouldn't advise a single clutch automated manual (I'll refer to these as AGS from now on, easier to type!) like what you will find in the above. Not necessarily because of reliability, but because they are not that nice to drive. We have a current shape Suzuki Ignis with this type of transmission, and while I didn't think it that bad on the shortish test drive I took before ordering, nearly two years in I have grown to dislike it quite a lot!. It works best if driven as a clutchless manual, i.e, you do the shifts yourself, but that kind of defeats the point of an auto. Left in auto mode, you will often find yourself in situations where you look like a learner driver on their first lesson!.

Insurance. Don't get too fixated on actual insurance groups, get quotes. My nephews first car at the age of 17 was a Skoda Fabia VRS 1.9 TDI with 130bhp. I can't remember what it cost insure, but it was a lot less than a Fiesta 1.4 petrol (80bhp and quite a few insurance groups lower than the Fabia) he had got a quote for. I queried him about it and according to him, the insurance company considered the Fabia a 'family car'(?).

With both the Civic and Jazz, Honda dabbled with AGS's, and your budget would probably land you slap bang in the middle of that period. Sticking with the Jazz, I am curious that you consider a MK1 Yaris an acceptable car for a young bloke, but not a Jazz. While I don't subscribe to the 'that is an old persons car' mentality, I would consider both to have a very similar image and appeal to the same type of person.

There is no reason a Smart car would have any more difficulty on hilly roads than an Aygo. It isn't the size of the car that matters here but power to weight ratio. But both use the same type of gearbox so, in auto mode, neither would be much fun in this environment.

Re the Suzuki Alto, build quality and reliability are two different, unrelated things. I'd be put off the Alto because of the gearbox, but they are very reliable (and cheap to run) little cars otherwise.

Any likely problems regarding an auto Corsa or Fiesta are going to depend on the gearbox type as both have gone through phases with AGS. Ford also used a dual clutch automated manual (DCT) called the Powershift, these are not known for being reliable.

Your biggest problem is budget as £2k, or even £3k, is not going to go far in the current market. On top of that, because small auto's are much more expensive than a manual equivalent, you are going to end up in an older car. That isn't necessarily a problem re reliability, but an older torque converter auto is unlikely to have more than 4 gears. And in hilly terrain like the Lake District, the car will be working hard, which will do the efficiency no favours at all. So I'd suggest going for a manual at the moment, you will have way more choice and you will get a younger car for the money. Even going for a manual, you really need to focus on condition above all else at that money, any car could be worth buying if it has been well looked after.

You've kind of hit on the perennial problem for first time car buyers - you want granny car reliability and running costs but not granny car image. Other than something like a SEAT Mii FR Line (looks like a GTI, goes like a glacier), which is out of your price range, I would suggest sniffing around the more obscure Japanese, Korean and Malaysian models, so:

Proton Savvy

Perodua Myvi

Daihatau Cuore

Subaru Justy

Chevrolet Spark

Suzuki Splash

Hyundai Getz

Mitsubishi Colt

I have had a Colt CZ1 and it was quite lively and (in 3 door) good looking.

Otherwise, I can't speak to the reliability of these, or quality of their auto gearboxes, but they are other stones to look under. I would agree that an auto is probably not the way to go. At that age and engine power, it will not be efficient or pleasant.

One very left field thought; if you want a reliable efficient auto you might consider a Prius. You could get a 10-15 year old one for your budget. It will have a lot of miles on it, but find one with full Toyota history and you should be OK.

I would still recommend a manual though.