I actually had the same experience - I test drove an 06 HCH II w/ Nav - I knew that was the car I was NOT going to buy (the dealer knew as well) as I did not want Nav.

The car did smell when I stopped to pick up coffee at 7-11. I was only mildly concerned as I was really testing out the car. I was accelerating up a steep grade to 90+ and then braking heavily repeatably to cycle the battery - I was curious if the battery charge would hold up. It did - which is why I bought one, just not that one.