The 2016 Smart ForTwo (third generation) uses a troublesome 6-speed dual-clutch automated manual transmission that dominates the repair landscape. The 0.9L turbo three-cylinder is generally reliable but suffers from specific head gasket and cooling issues when neglected.
Dual-Clutch Transmission Judder and Failure
Common · high severityTypical onset: 40,000-80,000 mi
Symptoms: harsh clunking during 1-2 or 2-3 shifts, severe judder when accelerating from stop, transmission slipping into neutral randomly, flashing gear indicator on dash, complete loss of forward gears
Fix: Temic dual-clutch mechatronic unit failure or clutch pack wear. Early cases sometimes helped by software update and fluid change (2 hours), but most need full rebuild or replacement unit (8-12 hours labor). Transmission must be dropped.
Estimated cost: $3,500-6,500
Cylinder Head Gasket Failure
Occasional · high severityTypical onset: 60,000-100,000 mi
Symptoms: white smoke from exhaust on startup, coolant loss with no visible leaks, overheating during city driving, rough idle and misfires, milky oil on dipstick in severe cases
Fix: The 0.9L turbo head gasket fails between cylinders or into coolant passages. Head removal, machining, and gasket replacement takes 10-14 hours due to tight engine bay. Often find warped head requiring machine work.
Estimated cost: $2,200-3,800
Transmission Oil Cooler and Mount Leaks
Common · medium severityTypical onset: 50,000-90,000 mi
Symptoms: red transmission fluid puddles under car, transmission fluid visible on cooler lines, excessive transmission mount movement during shifts, metallic clunking from beneath when changing gears
Fix: Cooler line connections crack at fittings, and rubber transmission mounts deteriorate rapidly from dual-clutch shock loads. Cooler replacement 3-4 hours, mounts 2-3 hours. Do both together to save on labor overlap.
Estimated cost: $800-1,600
LED Headlight Module Failure
Occasional · low severitySymptoms: one or both headlights completely out, headlight error on dash, intermittent headlight flickering, partial LED array not illuminating
Fix: Full LED headlight assemblies use integrated control modules that fail from moisture intrusion or LED driver burnout. No bulb replacement — entire assembly required. 1.5-2 hours per side for removal and coding.
Estimated cost: $1,200-2,400
Engine Bay Fuse Box Corrosion
Occasional · medium severityTypical onset: 70,000-110,000 mi
Symptoms: random electrical gremlins (wipers, turn signals, gauges), multiple warning lights simultaneously, no-start with clicking, intermittent accessory failures, corrosion visible on fuse box terminals
Fix: Fuse box seal allows water into forward engine bay location. Corrosion spreads through fuse terminals and internal buss bars. Most need complete fuse box replacement and harness connector cleaning (4-5 hours). Simply cleaning terminals rarely lasts.
Estimated cost: $900-1,500
Parking Brake Malfunction
Occasional · medium severityTypical onset: 60,000-100,000 mi
Symptoms: parking brake warning light stays on, parking brake won't release electrically, grinding noise when applying parking brake, parking brake applies randomly while driving
Fix: Electric parking brake actuator motors seize or cables bind in rear caliper mechanisms. Recall addresses some cases but doesn't solve all cable-binding issues. Actuator replacement 2-3 hours per side, full cable and caliper service 4-6 hours both sides.
Estimated cost: $800-1,800
Skip it unless you're getting it dirt cheap — the transmission is a ticking time bomb that will cost more than the car's worth to fix.
AI-assisted summary drawn from NHTSA recall data, our labor-times database, and platform knowledge. Not a substitute for a pre-purchase inspection on a specific vehicle.