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Garmin's nüvi 205 replaces the nüvi 200. Here's everything you need to know about what's new, what's changed, and whether the 205 is worth the extra money.

Physically the nüvi 200 and 205 and the exact same size, weight, and shape. Both have the same 3.5-inch 320 x 240 QVGA touchscreen.
The only noticeable different between the two models is the darker color of the nüvi 205's plastic case.

The nüvi 200 has an SD memory card slot, while the newer nüvi 205 uses the smaller microSD card type memory.
Note that no additional memory cards are needed to operate either the nüvi 200 or the 205, as both units come pre-loaded with maps of the U.S. (or one European region, if buying the European model). Additional maps can be purchased and installed via the memory card slot.

The nüvi 205's map screen has several important new enhancements:
The nüvi 205's addition of an upcoming turn arrow on the map screen fixes a major shortcoming of the nüvi 200, and almost justifies the upgrade from the 200 to the 205 by itself.

When entering an address, the nüvi 205 now displays the distance and approximate travel time on the confirmation screen. This is a nice enhancement that lets you quickly see how long the planned route will take.

The nüvi 205's on-screen keyboard has been slightly updated. The 205's rounded keys are a little smaller than the 200's square keys, and an icon for listing recently found entries (the folder icon in the upper-left corner) has been added to the 205's keyboard screen.
I actually found the nüvi 200's larger keys easier to use, and I made fewer typos on the nüvi 200 than on the 205's updated keyboard.

The nüvi 205 is equipped with an "Automatic Time Zone Transition", a feature that automatically determines the nüvi's position and figures out the correct time. So there's no need to manually set the time zone, as is required on the nüvi 200.

The Main Menu is functionally identical between both units, although the nüvi 205's icons have been updated.

The nüvi 205's menu system has been updated, and replaces the text-based lists of the nüvi 200 with the more intuitive icons.

The nüvi 205 includes a "Where Am I?" function not found on the nüvi 200. Tapping on the vehicle icon on the map brings up Garmin's updated "Where Am I" screen, shown above. This is a great feature that provides one-touch access to your current street address (or closest valid street address), nearest intersection, and exact coordinates, and makes it easy to save your current location into the address book.
This screen also provides one-touch access to find nearby hospitals, police stations, and gas stations.
Tapping Save Location Saving your current location adds the current position to the nüvi's Address Book, and allows you to assign a name to the location. Note that you can also save your current location on the nüvi 200 by tapping the vehicle icon, but the "Where Am I?" screen shown above is specific to the nüvi 205.
Moving beyond surface design changes or user interface changes, there are some significant hardware and functionality changes between the nüvi 200 and the nüvi 205.
I also noticed significant routing engine differences between the nüvi 200 and the 205. Both test units had identical 2009 maps installed, yet the nüvi 205 exhibited more refined routing decisions when calculating the route.
Compared to the nüvi 200, the nüvi 205 adds an upcoming turn arrow to the map screen, displays speed limit information on the map, chooses better routes, finds satellites faster, has a more sensitive GPS, is faster, and can be upgraded to receive real-time traffic alerts by adding an optional FM Traffic or MSN Direct receiver.
HotFix technology dramatically reduces the time it takes the nüvi 200 to determine its position, and the nüvi 205's GPS chipset is more sensitive than the 200's.
Separated by less than $20 in price (approximately, as of this writing), there's little reason to buy the nüvi 200 over the much improved nüvi 205. With a street price currently well under $150, the nüvi 205 is an excellent GPS, and very likely the best GPS in its price class.