Are In-Car Navigation Systems Going to Follow the Same Route as In-Car Cell Phones?

According to the USA Today, built in navigation systems increase the depreciation of cars and trucks. These new findings are forcing automakers to rethink the $2,000 in dash systems that they currently offer.

“Navigation could be like cellphones built into cars in the ’70s and ’80s; those big, blocky phones that nobody has now. Everybody has a small, personal cellphone,” says John Krafcik, vice president for product development at Hyundai Motor America.

The future of navigation systems may be the smaller, less expensive portable units that you can find at your local Circuit City or Best Buy. These portable systems can do most of the same functions as the in dash systems, but they are portable. Since they are portable they can be used in several vehicles, when you travel, etc. The current in dash systems are limited to the vehicle they are installed in.

Since built in or in dash navigation systems can decrease the value of a vehicle automakers are thinking of ways to offer the portable units to their buyers. (The new Land Rover LR2 will hold 55% of its value after 3 years, the LR2 with navigation is only going to be worth 52%). According to USA Today a unit that costs $2,000 when the car is new will only add about $600 to the value of a car after three years.

The main reasons for the increased depreciation are that used car buyers are always looking for a bargain, not necessarily technology. Also technology is always changing, so a three-year old navigation system will most likely be obsolete.

There are some negatives to the portable units such as: theft, they have to be mounted on the windshield or dash and the extra wires can be a hazard.

Full Story: USA Today