Basically, a car for people who would never buy a Honda/Toyota econobox.
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Despite its many quirks, the Smart can be rather endearing. But from a strictly practical standpoint, the Smart ForTwo is not so smart. Premium fuel eats up a good part of the savings from its excellent fuel economy. The car seats only two and provides modest cargo space. Although it won't gather a crowd of gawkers, we think a far smarter choice is the Honda Fit (due to be redesigned for 2009). ConsumerReports.org - Smart ForTwo: First Drive
Honda Fit is ugly and gets same fuel mileage as Honda Civic, why buy it? Also, premium around me runs about 4% higher than premium. Even if you factor in the 4% difference in Fit mileag, the Smart is still the clear winner.
That "modest cargo space" is 12 cubic feet if you stack upwards. About average trunk space for many 4 door sedans. Also, not many econo boxes come with the features that are standard on a Smart.
My wife and I have had two of them. We still have one that we've had for nearly 8 years! Most reliable cars we've ever had - and I've had my share of w123's, w126's and a couple of w140's.
I got t-boned in my Smart by a big car (Peugeot 406) in 2002. The front of the Peugeot was completely stoved in - the front wheel was pushed back, radiator split. He hit the back of the frame/ back wheel of the Smart. The back wheel/rear suspension was bent, but I was still able to drive the car home. The insurance company replaced some suspension bits, a wheel and a few of the plastic bolt-on panels, and the Smart was as good as new.
These things are safe! Which is why I am happy for my heavily pregnant wife to pootle around in hers. I believe the new shape one which is now sold in the US is even safer, although not so good looking and worse on fuel. We get around 55mpg highway with ours, and it'll do 85mph all day long.
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