Factory navigation systems DECREASE resale value on cars?

Factory navigation systems DECREASE resale value on cars?
Built-in navigation systems increase the depreciation of a car or truck, a startling fact that has some car companies rethinking their approach to the $2,000 factory-installed systems.

"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.
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TauronB2GTauronB2G - 5/9/2007 8:54:56 PM
+2 Boost
As long as the systems are updateable I can only see them helping make my decision. When I decide to trade in my Honda runabout I plan on seeking out a car with a nav system. For me its going to be one of the deciding factors.
T



cdokecdoke - 5/9/2007 9:22:20 PM
+3 Boost
I think that is where this technology is heading [closer to a computer interface], where the system and even its graphics are upgradable to some extent.


LexusKindaGuy12LexusKindaGuy12 - 5/9/2007 9:27:04 PM
+3 Boost
its not like were going to keep these cars for 14 years....they would be by the dumps


EnnNorakEnnNorak - 5/9/2007 10:28:40 PM
+2 Boost
I always believed that Nav systems for cars are grossly overpriced and a complete waste of money but I'd be surprised if they actually end up having a negative impact on the depreciated value of the vehicle beyond the incremental capital cost due to the addition of this option at time of purchase. I would have thought that the Nav system portion would retain at least 10% of it's original cost after a few years. The day I have to rely on a Nav system and forget how to read maps and road signs is the day I should stop driving anyway.


r_driver04r_driver04 - 5/10/2007 4:32:30 PM
+1 Boost
Huge props here. NAV is so over rated. How many times do use the stupid thing after locating your destinations the first time? How many people travel cross country to justify spending $2500. You can buy alot of maps. Need an upgrade? Nah, just recycle the old one and cough up another $10 for a current one. What a novel idea! I can't stand factory NAV. Garmin rules though. It's the cost vs use thing.


Agent004Agent004 - 5/9/2007 11:20:22 PM
+3 Boost
LOL, I find two things hilarious about this article:
1)That the most useful feature in cars today is thought to have a negative effect on resale according to some dope at Hyundai who is trying to push a dealer accessory instead and USA Today ate it up Fox style.
2) That USAToday.com tried to installed ERRORSAFE software on my computer from one of their ads.

That site officially has jumped the shark.


t_bonet_bone - 5/9/2007 11:37:41 PM
+1 Boost
I ordered my wife's MINI Cooper S with a navigation system just so that it would fill the place of the dorky speedometer. (On these they add a 2nd small speedo pod over the steering wheel.

Anyway, I liked the GPS function but it is very clunky and the i-drive-like interface sucked. It's already obsolete...but then again we sold the car so it doesn't matter to us anymore. I'll stick with handheld units going forward, much easier to upgrade and a fraction of the price.


r_driver04r_driver04 - 5/10/2007 4:34:31 PM
+1 Boost
And the 2nd speedo looked less dorky??? Good thing you sold it.


chewychewy - 5/10/2007 12:28:42 AM
+2 Boost
If a car loses a lot of its value after some years (like 1/2 of it) why shouldn't the 2,000 navigation only add 600 dollars after that same time period.


r_driver04r_driver04 - 5/10/2007 4:38:19 PM
+1 Boost
Because you'll have to spend another $600+ to update it and purchase a new instruction manual to go with the out of date system.


truckmentruckmen - 5/10/2007 4:47:25 AM
0 Boost
Hard to believe! With two identical cars could you see the one with a gps sell for less? Never have to rely on a GPS! a few months ago my brother almost froze to death in the mountains because his top of the line new 650 Garmin failed to work when it was needed most and no it wasn't the batteries and he probably should have sued them! They always work when you don't need them! Although I would still like one in my vehicle though, but I would NEVER rely on it!


r_driver04r_driver04 - 5/10/2007 4:36:34 PM
+2 Boost
Maps and compasses don't need batteries. Some of those floating bulb compasses use water of course, which probably would of frozen right along with him.


indoctrin8edindoctrin8ed - 5/10/2007 5:47:23 PM
+1 Boost
No, it's not saying the car with GPS is going to sell for less. It's saying that the $2,000 extra spent on GPS does not raise the value of the used car much, if at all, which makes the *percentage* of depreciation higher.

What this means is people won't pay extra for GPS on a used car over one that does not have the feature.

I predict GPS will becomes standard, like CD players, that people will EXPECT to have, not pay extra for.


Bighead255Bighead255 - 5/11/2007 8:36:03 AM
+1 Boost
lets be practical who here if they saw 2 identical used cars wouldnt pay an extra 1500 for the one with built in navigation lets b serious im not putting a garmin in my luxury car sorry


EnnNorakEnnNorak - 5/11/2007 11:47:00 AM
+2 Boost
In response to DavidThande, I would only take the bus if it saves me travel time and avoids parking hassles downtown. The problem with busses is that they are often packed like sardines and some of the lung-diseased riders cough indiscriminately. Bussses have a rough ride ride even with air suspension. Bus ridership is no substitute for normal car use and busses do not use NAV systems either so what's the point?


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