I've never had an issue selling smokey smelling cars, either to a dealer or private. And all of them had shot brakes as well, so couldn't be taken for test drives (I don't know if this is normal, but I use my cars until the brakes fail, then sell them because I don't like driving with no brakes).

My last car, I stupidly bought it blind. After getting it, I found there was a stain on the passenger side floor, and the car stank of death and decay - I suspect something died in it and wasn't found for awhile, during hot weather, with the windows up.

Anyhoo, had the car for 5 years, and if anything, the rotten smell was somehow worse, like it was growing stronger as it aged and matured - and I'd topped it up with the aromatic ghosts of a few thousand cigarettes. Still sold it to the first guy who answered my ad. Got about 6k for it, despite the awesome smell, blown brakes, no test drive, the roof liner falling down, cigarette burns in the carpet and seats, no honker, a bit of mould, etc.

Don't worry about being laughed at, dickheads will be dickheads, not much you can do about them other than say thanks for their time, and walk away. If you shop it around, you'll get an offer or not - but if you don't ask, then you will just simply not get an offer.