The Navigation system has always been optional on the Prius. What may have caused confusion is that the Navigation system comes standard ("is included" might be a better phrase than "comes standard") with certain optional package levels (this really means it's optional). In the 2010 the Navigation system has been vastly improved over the previous years.
i bought a 2007 Prius and it doesn't have navigation and mine is pretty basic, so its not standard, maybe for the luxury prius with leather and premium sound it does come standard, but not for the basic 2007
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