Hey there! I don't recall my Yaris having such steering/handling issues when I first had it. If the steering is really crooked, then a wheel alignment is needed. But I see that you've already had that done by your dealer. I would say 40PSI is way too much. When I was rolling on the stock rim (15") & tyre combo, I always had my fronts set to 34PSI and 32PSI in the rear. The car handled decently. Since then I've made some upgrades to improve it's handling. This includes, lighter & wider rim (16x7, 5.5kg) & tyre (195/50R16) combo. I've also lowered the car by about 1.5" and installed a Whiteline 22mm rear sway bar. The Yaris with such simple upgrades handles extremely well, turn in is sharp, straights are stable, and overall the car is much more planted. I'm looking into stiffer struts/shocks to replace the OEMs once they wear out. However, I'd say none of these upgrades are necessary if you are just using your Yaris to get from A to B (home to work). So I would suggest trying the tyre pressures I've suggested first. See if that makes a difference to the way it handles. Also, do you have the alignment values from the last wheel alignment? Not sure if I was much help, let us know how it goes! Kenneth