Let's face it. For the price, there are a lot of good small cars that are much more practical and cheaper to maintain than the smart.

But for some odd reason, we're always willing to spend money on things that seem superfluous. We pay to sweat in a sauna and dunk ourselves in cold water at the spa. We pay to go to the gym when we could just go jogging or work out at home. We pay for bottled water when it unlimitedly flows out of the kitchen faucet. What's wrong with us?

The 2008 model is actually bigger; it's longer, wider and rides on a longer wheelbase.

We like looking fashionable and trendy, that's the problem. And the smart is just that. A Hyundai 2-seater with a 70-hp engine would have to be priced at $9,000, but the fashion statement of the smart means that $15,000 is a price people are willing to pay. Is it worth it? And can the smart cabriolet justify its $21,250 price?

Still cute
You don't mess with a good thing. The new fortwo looks so much like the old one that you have to look twice to distinguish them apart. But the 2008 model is actually bigger; it's longer, wider and rides on a longer wheelbase.

This test car's color is supposed to be red, but it's actually orange, which isn't to my liking. But one thing that's innovative with the smart is that for $1,630, you can order a second set of body panels painted in one of six available colors. So, if you feel like it's time for a change, your smart can easily change its appearance. The body panels have to be changed at the dealer, though, and the operation costs somewhere around $240.

Inside, the curvaceous dash of the old model has been replaced by a more-conventional layout. But it's still covered in stylish cloth, and I wonder why other manufacturers don't do the same; it looks upscale and doesn't glare on the inside of the windshield.

Inside, the curvaceous dash of the old model has been replaced by a more-conventional layout.

The convertible top also acts as a sunroof, but if you want the full-fledged open-air experience, you must get out and unfasten the roof rails; at least they can be conveniently stowed inside the hatch.

The convertible top also acts as a sunroof.

Gasoline replaces diesel
The old 0.9-liter inline-3 that equipped the previous-generation smart has been replaced by a 1.0-liter, 4-valve-per-cylinder 3-banger that develops 70 horses, which is almost double than in the old model. The sequential transmission with automatic function now has 5 gears instead of 6.

Now, with so much more firepower, you'd expect the 2008 fortwo to be much quicker than the old one, right? Wrong. The new model's performance goes from 'merely adequate' to 'rather tolerable'. Huh?

It's simply because the old diesel engine produced more torque and peaked much sooner. So why change the engine, if isn't as frugal as before? Well, the smart has been Americanized. That's right, since it's now sold in the U.S., it needed a gas engine to improve its chances of succeeding across the border. The good news is that it's more relaxed on the highway, and the rocking-horse sensation during gear changes is reduced (a little).

My fuel consumption average is 7.2 L/100 km, which is more than I expected. And the engine takes premium unleaded.

Improved road manners
The previous smart, with its short wheelbase and small wheels, had a pretty rough ride. The new car is more comfortable on the road, and the steering ratio is quicker, which makes it more entertaining to drive. The noise level is also lower inside the cockpit.

Okay, it's still a little crude compared to a conventional subcompact, but that's one of the sacrifices you'll have to make in order to look trendy.

The new car is more comfortable on the road, and the steering ratio is quicker.

Other sacrifices of owning a smart
Besides having only two seats, strapping my kid on the passenger seat makes me nervous; the right-side airbag deactivates itself automatically, but as in the previous smart, I'd like to have a kill switch as is the case with the BMW Z4 and the Mazda MX-5.

The cargo area has a maximum capacity of 340 litres, about what a compact sedan's trunk can hold, but your stuff must be piled up to the roof. The steering column isn't adjustable.

The cargo area has a maximum capacity of 340 litres.

To add windshield washer fluid, you must detach the hood using two nail-breaking latches. The hood is held on by a strap, and the fluid filler neck is still too small.

Competition
Um, there aren't any. The smart fortwo passion cabriolet retails for $21,250, and the metallic paint is worth $430. The out-the-door price of this test car is $21,680.

For that price, though, it comes with a long list of standard features, including climate control, power locks, mirrors, windows and roof, 6-CD changer, heated seats and a leather-wrapped wheel.

If you're looking for something fashionable at a similar price, you can also check out the Mini Cooper, which starts at $22,800.

Conclusion
Yes, the smart fortwo looks chic, and the new model is much-improved over the first generation car. I talked about sacrifices before, and there are now less of them.

The Canadian government is currently handing out $2,000 tax rebates to everyone who purchases a smart fortwo, including the cabriolet. That also means a base fortwo coupe will end up costing you the equivalent of $13,000, which is good. Some provinces also pitch in and reward you with credits.

My wardrobe is full of gray, blue, black and white clothes, which pretty much sums up how closely I follow current fashion trends; I don't. Thus, I shouldn't like the smart, but I do. I guess there's nothing wrong with wearing a lime-green shirt once in a while.

The new model is much-improved over the first generation car.