Thought I would throw this in there. This is a next gen wire frame for a Forza 2 vehicle. Yes Gran Turismo Prologue is using car models up to 200,000 polygon faces per vehicle...though if you read into it a little, they did say most the polys got ate up on the interior of the vehicles. Your not wasting yet...add in some more loops into the window areas and areas you see your edges being pulled or stretched by the smoothing function. Once you do indeed do the smooth, go back over the model and optimize out edges in areas that don't need the divisions to hold the shape or smoothness. Polygon count on the new consoles are really an afterthought to textures and materials....though it's never good to be wasteful as all memory will become golden towards the end of a project.
Thought I would add ironically I work down at Firebrand Games and all we do is car racing games. We develop for the Wii and the DS though...so models like this are unheard of for us. I'll be lucky if I get a 800 tri budget!