The ridiculous cost of in-car navigation systems

By | October 13, 2011, 4:59am PDT

Summary: The maps used in my in-car navigation system are not current, so I went looking for an update. I found it, if I am willing to pay the exorbitant fee.

Navigation systems are one of the greatest advances in the automotive industry. While there are numerous mobile alternatives using phones, portable navigation devices and the like, there is nothing more convenient than having a factory-installed system. That convenience comes at an unexpected price, as I recently discovered.

I recently bought a used car with all of the technology bells and whistles. This included a nice navigation system integrated into the car. I use the system all the time and find it to be a great option. I have noticed that the maps presented by the system are not very current, so I checked into getting updated maps.

This particular system is produced by map-maker Navteq, along with the maps. A quick search took me to the mazdanavigation.com web site, where it told me how to verify what version maps I am currently using. The maps I have were dated 2006, so no wonder they are out-of-date for a constantly changing city like Houston.

The latest maps available for my car are dated 2010 and come on a DVD. The DVD map player is located underneath the front passenger seat, and installing the new map DVD looks to be a simple process. The problem is the cost — $199 for the new maps.

Given the fact that the company had a deal with Mazda for these factory systems, that update price is definitely gouging owners. I don’t mind paying a reasonable fee for current maps, but two hundred bucks is way out of line. From what I can determine the companies behind factory-installed navigation systems normally update the maps every year or two, so staying current is an expensive proposition. My research shows this is not unique to my car, and is obviously how these map companies line their pockets.

I don’t mind paying for good technology, but I do object to paying over and over again. It makes those phone-based systems with online maps look pretty reasonable, if not as convenient.

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James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long.

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Biography

James Kendrick

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' writing has appeared in many print publications: Smartphone and Pocket PC Magazine, Information Week and Laptop Magazine to name a few. James' coverage of the mobile technology sector has regularly appeared in the New York Times, Salon.com and CNN/ Fortune online. Not just a writer, James has filmed numerous video reviews and how-tos that have garnered well over a million viewers. He has appeared on local news segments and been interviewed by the Associated Press on mobile technology topics. Additionally, James has been podcasting about mobile technology for years.

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RE: The ridiculous cost of in-car navigation systems
wfc182 20th Oct
My '09 Dodge Avenger is going to cost $199 to update also. The fun part is the maps were 2 years out of date when I bought the car! I'll use my DROID X phone when needed instead!
I drive a Volvo and have complaints too. My recent one gives me the right to receive one for free. But it's weird compared to others like Google. Even TomTom is cheaper and gives you more service.
@HHalewijn

Portable units like the Tom Tom have to compete against a slew of competitors (including smart phones) and so they tend to offer stuff like free maps for life and free traffic to differentiate themselves. But as for OEM NAV units, you likely had no choice in the matter... just the unit your dealer offers.
@HHalewijn
For years I used Street Atlas on a notebook until I bought an Acura MDX with nav. Street Atlas was 10x better, much more up-to-date, and updates were under $100.

The Acura nav has bad data for my area so that half the time, it shows that I'm driving in the middle of a lake or out in a field. It also does not have the speed limits for many roads, so the time to arrival is never right.

A nice feature of Street Atlas was that the user could easily draw in new streets; it had many other great features not in car nav systems. Too bad car navs don't let you put in your own software.
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nothing to see here
$200 to get an update= use Nav display screen as a smooth, flat surface to install the suction cup for my Android phone car mount.
@Dell-Bill B the Toyota/lexus navteq disk is $100. Same data with the mazda logo double the price huh? I find an android faster to use than the built in nav.
@Dell-Bill B
Brilliant idea! I was very excited until I realised I have to use that same screen to control the A/C, fans, vents, sound system and so on... Rats!
@HHalewijn
Has anyone else noticed the similarity with printers and the cost of replacement ink pens? Looks like the GPS vendors (including the portable models) are working on the Gillette principle.
Yup, you're 100% correct on this. For me the only saving grace is that even old maps work for 99% of what I need. I haven't updated the maps on the AVID D3 navigation system I bought 6 or 7 years ago, and can't remember when I couldn't find something due to outdated maps.

Really, you shouldn't have to update your maps more than once every 5 years, and you're probably not going to keep your car much longer than 10 years.
@dsf3g
that's true for most people, but if you live in an area full of new suburbs, many of the street names will change, new streets are added and finally the lot numbers get changed to house numbers -- that process takes up to five years, and navigating through in the interim is frought with agony -- it's best to get updates as often as possible. many map providers offer quarterly updates on subscription for ~$50-100/yr.
@krzyst0ff
There is no way I would pay $100 per year for updates for the inbuilt GPS, even if it were an option for me (it isn't).

Easier and cheaper to just buy a new portable unit for $100 every couple of years. I now have a Navman for when I am travelling and renting a car. By the time its maps really need updating I will just buy a new unit for around the same price with current maps and more features!
@krzyst0ff If you choose to live in an area full of new suburbs, you have to accept the trade-offs.
@dsf3g
Agree, mostly. When buying the car, I naively assumed that the updates would be around the same price as for portable GPS units. Boy, did I get a shock when I found out that the price for a map update was $500 - so I just put up with the supplied maps for a few more years. Eventually, though, it became unworkable as I was spending half my time driving across paddocks (according to the GPS) when in new areas - including my own home.

Fortunately the local dealer took pity on me and sold me the update at near cost price - but it was still $350! I don't plan to update again in the foreseeable future, and most definitely will NEVER again be buying a car with an inbuilt unit.
Check e-Bay. I can't promise that what you are buying is really the genuine article (i. e. not a disk copy), but I know a lot of folks have successfully updated that way for a lot less money.
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@jglopic Maybe a better way is to not buy the in-car solutions.
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re: piracy?
kingtj 13th Oct
@happyharry_z: I think he was merely suggesting that piracy is ONE solution, not "the" solution. Quite frankly, as soon as you get out of the realm of buying factory or name-brand navigation systems and start looking at the Chinese aftermarket, there are quite a few in-dash replacements out there that look almost like factory originals but guess what? They almost ALL run a version of Windows CE with a pirated version of a popular navigation package like "iGo" pre-installed on them.

Piracy is rampant in the GPS navigation business because competition is fierce and the end-customer sees less and less reason to pay very much for the technology in the first place. (Why do so when services like Google are giving the stuff away free on every Android phone, for example?)

I don't really feel too bad for companies like Navteq anyway. They've made PLENTY of money licensing their maps to at least 50+ different manufacturers of GPS units, and if they never sold a single upgrade map to any end-user, they'd still be doing great from the initial map sales to the manufacturers! Map upgrades are just "gravy" for them. And really, the map data you pay for is at least a year or so behind the date of release, because they're so slow in getting changes integrated into their maps. I used to get quarterly map updates for my Navigon GPS (used Navteq maps too), and I watched for a full year after one of our major road intersections with an interstate was re-designed. The Navigon still had the old info that whole time ....
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@happyharry_z .... If its a rip off only the stupid buy it.
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Its not necessarily piracy...
Diveguy7317 13th Oct
@happyharry_z
I updated my in-car device for significantly less than retail. My gps provider issues the US map on 2 different dvd's, an east disk, and a west one. There were quite a few westcoast people willing to sell the east disc which I needed and they didn't, for less than half the total cost. They were able to recoup a significant portion of their cost, and I got a cheaper update. Not piracy.
@happyharry_z

Piracy isn't an ethical solution but it is defniately a solution and the given the rediculous pricepoint understandable if not justifiable.

I use your solution personally, A Garmin with lifetime traffic and maps can be had for less than the cost of the update + it can be moved when you trade the vehicle.
@happyharry_z - Sadly, The auto makers know IF you want the other "special" heated seats, safety, etc items YOU ARE FORCED to buy the Nav sys too...Seems like they have a deal with NAV to once again.."used car salesman" of old are the New Car Dealers of today.
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e-bay - not for Garmin
Bruce.Whiteside@... 13th Oct
@jglopic My wife and I each have a portable Garmin GPS and I bought identical models expecting to cut any update costs in half. NOT SO LUCKY. It seems Garmin locks each update to the units Serial Number. Good luck with that E-Bay copy. 8-(
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than having a factory-installed system."
I'd disagree, James. It's very handy to have a portable unit that you can take into your home or motel/hotel when you're traveling to pre-plan the next day's route. Or you can use it when navigating on foot in an unfamiliar city. Plus, I bought map upgrades (about two a year) for as long as I have the unit for $100.
@Userama
$100 may not be $199 but it still strikes me as overpriced. How much did your device cost to begin with? If it was $200 would you have paid $300 if it included unlimited map updates? If it was $100 would you have paid $200?
@bunkport ... You probably would pay over $1,000 for an in-car system, then pay $200 for updates available only from the manufacturer. It is VERY overpriced for the convenience it provides.
I don't think there's a single "OEM" navigation system that's under $1,000!!! Think about it for a minute... You spend $1,000 (+, especially if you have anything more than an entry level model, and luxury model cars will charge $2,000, $3,000 or more!!!!) for what you can pick up at best buy for under $99 on sale.... My personal belief is that people with the built-in navigation units are generally insane and have no money management skills.... whatsoever!
@rock06r .... no quality and all ripoff.
@rock06r except that you often don't have any choice if you want to upgrade other options. The better ones are well integrated. But, totally agree that they are horribly over-priced
@rock06r So if somebody doesn't agree with you and sees value to them in having a built in nav system they are automatically insane and have no money management skills? Here is a thought, maybe the have better money management skills which allows them to have more money to spend on such items. Maybe they are not insane but are actually smart enough to realize that what they want and need is not the same as what everyone else wants and needs, something you apparently can't figure out.

I have a built in Nav in my truck and I love it. Have not had any issues with it being out of date where it was even remotely an issue. I also have a portable unit in case I am driving one of my vehicles that doesn't have a unit or in a rental. I also have a laptop mount and GPS software to use my laptop in my truck when I am traveling where there are no roads. Use the built in Nav to get to the end of the road then the laptop from there. Each have their uses and none would work for every case use I have.
When we purchased our Toyota Sienna, the salesperson tried to sell the package with in-dash GPS (of course that means a higher sticker price). It's great that it's offered, but I told my wife that if we go that route, we are trapped for the length of ownership. It's not like we could walk over to Ford and get the data. Ahh! The wonderful world of monopolies and sole source! I've always preferred the take-along units (Garmin, et al) because of the flexibility. I bought a Garmin 1450 (with free lifetime traffic and map updates) for my wife 2 years ago for around $200, and applied 3 map updates already (for $0).
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BINGO!
IT_Fella 13th Oct
@scruffydawg

Have the exact same unit and love it. Audi wanted USD$2500.00 for a NAV system in my A5, & told them no thanks. A little well placed Velcro...and off I go.

AND...I can move the unit from car to car...of which I own 4.
IPAD and velcro
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Bundling
John L. Ries 13th Oct
The reason why they're expensive is that they're bought with the car and financed with the auto loan. If they were typically paid for with cash, the prices would be much lower (like maybe 10% of what they are now).

The price of anything is directly proportional to the perceived buying power of the clientele. Always has been. Always will be.
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RE: The ridiculous cost of in-car navigation systems
LoverockDavidson_-24231404894599612871915491754222 13th Oct
You have money for a new iPhone and 4 tablets but you don't want to pony up for new maps that cost half the price. I think you see where I'm going with this.
I think you see where I'm going with this.

Sure. To another level of idiocy.
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They are cheaper...
wright_is 13th Oct
than they used to be. A friend had an Audi and tried to get an update a couple of years ago, back then, it was around 400???. My Ford Mondeo nav system update was around ???250, I went without.

To be honest, 99% of the time, I use post-it notes.

When I bought my last car, I didn't bother paying the 2500??? upgrade price for the navigation system + entertainment system, the standard entertainment system has an audio-in, which is enough for me.

I've used my iPhone / Android Phone for directions about 4 times in 2 years and have taken 3 or 4 printed maps of bunch of post it notes with me. The rest of the time, I just use my inbuilt sense of direction.
In car ridiculous, even my Tom-Tom would cost me more than I paid for the device (refurbished). My Android T-Mobile Google phone however works great. It's a bit of a pain to keep it plugged in to a charger and and FM transmitter to play the sound through the radio, but it works and NO MAP UPDATES. The FM transmitter does double duty for playing mp3's. In fact that's why I "broke down" and spent $12 for it at Wallybox. It's velcro'ed in place where it can reach the phone balanced on the ash tray or the Sansa mp3 velcro'ed to the dash.
My wife has a 2007 Nissan Maxima. Her car tells a much worse story. The map updates are just as expensive, but the system itself is horrible. Few useful POIs, poor coverage of roads, and a nightmare of a user interface made worse by the enforced inability to program it while driving. My passenger can't even program it, forcing me to stop and program it before setting out.

The poor memory capacity is evidenced by the need to identify the "region" you're in every time you cross a state line. Indiana and Kentucky, for example, are in different regions.

Overall, like car radios of yesteryear, portable systems like TomTom and its ilk will outperform the installed systems every time.

PS. I did buy an update from eBay. It appeared to work (it was a disk copy...) but then failed repeatedly. I had to go buy the retail version to fix it.
when the auto industry offers these systems with free lifetime updates, then they will be a worthwhile accessory for their cost !
Tech changes so fast. When you buy your car these units are usually out of date already as theya re well over 12 months in development. I have a window mount for my Android phone and a aux input on my in car stereo. My phone does Navigation with always current maps, has all my music, satellite/internet radio, phone calls, plays movies, is a 4G hot spot, has Bluetooth..... it does way more than any in car system can ever hope to do. And I can take it anywhere and upgrade it for years for the price of one in car system. What I do not like is the car companies are making it so you have to get these in car systems if you want to get other luxury items on your car as part of a "package". People get these systems because they are "cool" or want to keep up with the next guy. Not me, I will keep my $2K!
Honda charges $199 for the upgrade to its maps and they come out with a new DVD every year. But the past two years because of the slow economy they have been running a special $149 plus free postage.

That of course comes with a catch. The maps are 2 years old.

I wonder if we can all file a class action law suit against these guys?
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Points of Interest
Winemaker Kevin 13th Oct
The system you mentioned in your article also showed less than 1000 Points of Interest. I bought a Magellan for $150 two years ago with over 6,000 points of interest, and it's probably more now! They're an important feature, totally ignored in the over-priced built-in systems.
Try finding map updates for an iWay500 or iWay600c! These GPS device were amazing [high priced] units when new, but that investment is now dead due to the product & map updates being discontinued.
How would you feel if you bought the latest proprietary disk and found that it doesn't have four lane divided highways that were constructed in 2006 on it!

Welcome to the world of GM.

The only thing I like about the installed unit is that it is touch screen. Other than that the interface sucks!

I would buy a standalone unit just for the interface alone.
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@msb2001 When I bought my Saturn Vue in 2008 I had considered getting the GPS system but after playing with one they had in a demo car I decided against it - I use my iPhone and the Maps app to help me navigate and it's been right 90% of the time.
Then again, for $14.95 you can pick up a new Rand-McNally road atlas every year. Or Google your directions before you go. But then, I refuse to pay $80+ a month for a cell phone either.
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I'm Mixed
dwoodeson 13th Oct
We've used the Lexus and Mercedes nav systems, and even though I had outdated maps that didn't include several new highways in our area, the nav still worked great for out needs. Sure, it get's confused when you're on that new highway, but settles down once you exit back on to the "legacy roads".

We went to Sea World San Antonio last weekend, and I thought I'd get fancy, and use Google Nav on my Droid Charge, even using a voice command to set it up. It worked great! I was a hero! Until the battery died, that is. Horrible timing, it was right as we were entering the unfamiliar city, and I had to pull off the highway to program the car's nav (embarrassing).

The Nav app consumed so much battery and/or processor, my phone heated up, and charging was suspended. I wasn't alerted to the low battery condition, I guess that was suppressed/overridden by the Nav application.
@dwoodeson I think it's a combination of the GPS keeping a fix, the cell network constantly getting updated map info, and the screen staying on. If I'm going to be using navigation for a while, I take off the case before I start. That seems to solve the overheating issue.
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$200+ smackeroos?
fm-usa 13th Oct
Keyword being used these days is, BOYCOTT

" To me, way, hey, tow/THROW them away,
Let's throw the bum/GREEDIES out of town! "
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For many years I used a a waterproof hand held GPS. It had optional power supply and mounting bracket to use in a vehicle. I used it in the car, on my cabin cruiser, in my canoe and on a cruise ship. If dropped in the water it floated. alas, it finally died. I'm currently shopping for a replacement. I prefer an all around unit rather than an imbedded auto model.

It didn't talk to me, but it gave me all I needed in strange places and strange cities.

There are many options available today, choose carefully. The price gouging for maps applies here, also. Kind of like Epson printers, the maps could cost more than the unit.
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It's hard to imagine a tech guy being as naive as you. It's no secret that OEM NAVI systems are outrageously priced when buying the car, but you get a pass since you bought a used one. Secondly, a portable GPS nowadays is dirt cheap and more user friendly even when you need updates plus the operative word, it's portable. I have a system five years old the covers NA and Europe for which I bought lifetime maps and it's been a great little gizmo for my trips in Europe and the US, paying for itself in time saved, less frustration and costs involved in renting one when renting a car. These map updates are no more ridiculously priced that the OS system upgrade/updates pushed by the software companies, they are cash cows. Keep it simple, keep it cheap, after all the technology will be obsolete sooner than later.
My '09 Dodge Avenger is going to cost $199 to update also. The fun part is the maps were 2 years out of date when I bought the car! I'll use my DROID X phone when needed instead!

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