Navdy is powered by plugging into the driver's on-board computer port. Once that is done, it connects to an iOS or Android device via Bluetooth.
Users can activate its voice and gesture controls, which allow them to take calls, reply to texts and ask for directions without having to pick up their mobile device. To configure these settings, users will need the Navdy mobile app, which is expected to be available in early 2015, Simpson said.
Another goal is to prevent the disappearance of the navigation system when a call comes in. It uses a split screen when using a navigation app and when a second notification such as a call or text message is received, Simpson said.
The device can also project speed, RPM, fuel economy stats, tire pressure warnings and is compatible with music apps such as Pandora and Spotify.
This isn't the first time that the heads-up display technology has been used. Garmin announced a heads-up display device last year for $180. Navdy will retail for $499.
—By CNBC's Erika Santoro