

If you frequently drive in unfamiliar territory or simply hate straining to see street signs, then a navigation system might be a worthwhile investment.
These devices — formally called global positioning satellite (GPS) navigation systems — allow you to enter an address and get turn-by-turn directions to your destination. The directions are provided both visually and audibly.
The main question is whether to order one that is pre-installed on your new vehicle and integrated into the dashboard (we'll call these "in-dash" systems), or to buy one of the many portable navigation devices that do virtually everything the built-in ones do, at a lower price.
There are pluses and minuses to both, and which one is right for you depends on your budget and where you drive.
The Low Price of Portability
Nearly 14 million portable GPS navigation systems were sold in 2006, compared to about 4 million in-dash units. The overwhelming popularity of portable navigation devices is due primarily to the fact that they're significantly less expensive than the integrated variety, says Rob Sanderson, an analyst at American Technology research.
The GPS systems that car manufacturers install at the factory typically start at around $1,500 to $2,000 and increasingly come bundled with other expensive options like back-up cameras and radar-based cruise control that can send prices skyrocketing. By comparison, portable navigation devices have dropped 25 to 30 percent in price over the last two years, from the thousands of dollars into the hundreds. Some basic gadgets cost less than $300. "New portables are much cooler; the user interface is really good, they're easier to use, there are better, brighter displays and other features, like carrying music," Sanderson says.

Still, the abundance of choices can be daunting and the quality can vary.
Bear in mind that not all cars offer in-dash navigation systems, so in those cases a portable would be the only option.
Freelance photographer Ken Goldfield says he loves the Garmin Nuvi 350 portable navigation device he bought two years ago. "I have not looked at a map since I got this little piece of electronic wizardry," he says. "I would be lost without it. This has become one of the most valued pieces of equipment next to my cameras and computer that I rely on to get my work done."
The latest generation of portable navigation devices takes full advantage of voice recognition, and higher-end units, like Garmin's Nuvi 680 ($850), add features such as Microsoft's MSN Direct network to call up local gas prices and movie times.
But the portables are not without faults. Sometimes the terrain — such as the tunnels and concrete canyons of New York City — interrupts the satellite signal and prevents them from functioning continuously. This is where the pricier systems that auto manufacturers install at the factory may have an advantage: Because they incorporate sensors in the car's steering system, throttle, and wheels, the more sophisticated in-dash versions can project the path of the vehicle on the route map, even when the satellite signal that serves as the guide for all navigation systems gets interrupted. But even they are not completely foolproof.
Built to Last, or Until Outdated
In-dash navigation systems that integrate with a vehicle's built-in controls are getting more popular and even come as standard equipment on some high-end models. These systems are more expensive partly because their components are built to last the life of the car, or about 15 years, says Sanderson. That's five times the projected three-year lifespan for portable devices.
But with cutting-edge technology like GPS navigation, longevity is actually a downside: Owners with built-in nav units are stuck with the same one for the life of the car, whereas those who buy portable ones can upgrade to new models whenever they want.
Sanderson believes that in-dash navigation systems are outdated as soon they are installed. "The design timeline for cars is close to four years," he says. "[In-dash systems] may use the latest and greatest technology, but it was the latest and greatest four years ago." Portable devices don't have this problem because they only take about a year to go from concept to production.
Automakers try to mitigate the effects of long production cycles and the rapid advancement of GPS technology by waiting until just before a car goes to market to incorporate navigation systems. They're also adding features and functionality, like real-time traffic updates and innovative displays such as the heads-up unit on the Chevrolet Corvette that can project route guidance on the windshield in the driver's line of sight.
Some automakers are even combining GPS navigation systems with entertainment features to remain competitive. The $3,145 "infotainment" system on GM's 2008 Cadillac CTS features a retractable touch-screen, GPS navigation screen with voice-recognition software, traffic and weather alerts, a 40-gigabyte hard drive for music storage, and allows drivers to pause and rewind live radio broadcasts. Auxiliary inputs for MP3 players allow users to listen to their own music, see their playlists displayed on the touch-screen, and use steering wheel controls to select the tracks they want to hear. The system wowed us when we tested it recently — there was a learning curve to the controls and layout, but the array of well-integrated functions and features blew us away.
In-dash GPS systems are "a platform for a lot of capability that portables will never have," says Jeff Evanson, an analyst at research firm Dougherty & Co. In addition to having bigger screens, in-dash units can also be integrated with vehicle sensors to display information related to a car's diagnostic system.
Chrysler's GPS navigation package, standard on the Jeep Grand Cherokee Overland and Commander Overland, is a separate $1,300 option that can be bundled with the company's all-in-one MyGIG system. Borrowing technology from high-end audio developers Alpine and Harman Kardon, MyGIG has a touch-screen display, voice-recognition, 20-gigabyte hard drive, DVD player, digital jukebox, photo storage capability, and offers real-time traffic alerts through SIRIUS Satellite Radio.
Ford, Mercedes-Benz, and Mitsubishi are three others that have already integrated hard drives and entertainment features with navigation systems.
What to Look For
If you're considering springing for an in-dash navigation system in a new vehicle, we recommend that you play around with it first. Try to input a few addresses and experiment with some of the menus and functionality before making a decision, because each system can have quirks that may become annoying over time. For instance, some German luxury vehicles, including Audis and BMWs, don't use touch-screen technology, but rather rely on rotary knobs to enter information like destination addresses.
In test driving vehicles with these systems, like the Audi S6 and BMW M5, ForbesAutos editors have found them to be more time consuming and tedious to use when entering a destination or trying to scroll around on a map. Others, like Acura, Cadillac, and Infiniti can be operated via touch-screen or buttons and knobs — but the litany of controls can be overwhelming and confusing.
It's hard to say which manufacturer builds the best in-dash navigation system. Our test drives have proven that, depending on where you're going and what parameters you select for a particular route — such as avoiding tolls or back roads — the path given to a destination can be circuitous, misleading, or just plain wrong.
An Acura MDX that one ForbesAutos editor drove to Upstate New York on a ski trip sent him up winding, narrow mountain roads and straight into a dead end that looked like a clear path on the navigation system's map. He had to backtrack 30 minutes to a main highway and relied on old-fashioned word-of-mouth directions from a local to get back on track.
The maps for portable devices are generally updated every six months, while those for in-dash systems are refreshed every couple of years, says Thilo Koslowski, a technology analyst at research firm Gartner. Then again, some users never update their map data unless they're planning to travel to a new place and are willing to pay additional fees. Koslowski says that the "take-rate has been extremely low" on map updates.
The final decision regarding which type of GPS system is for you depends on whether you prefer portability or integration, a large screen over a small one, and whether you need additional functionality like that afforded by an infotainment system, among other factors. But if prices keep dropping, it won't be long before every car on the road has some kind of navigation system guiding its driver, maybe even striking up idle conversation as it pilots the car for you.
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