This master's thesis explores the design principles and user preferences for immersive navigation systems in augmented and virtual reality, with a focus on enhancing the driving experience and improving safety. Drawing on Action Design Research methodology and flow theory, an artifact and valuable insights were obtained from 13 interviews. Four design principles emerged from user preferences and aligned with flow theory: Personalized Navigation, Contextual Driving Guidance, Simplified Information Display, and Familiar and Consistent Navigation Feedback. These principles emphasize tailoring the navigation experience, providing relevant information, presenting it clearly, and offering timely feedback. They serve as valuable guidelines for the design and development of immersive navigation systems that enhance the driving experience and promote safety. 

The study also examines the implications of using virtual reality for testing and showcasing navigation systems designed for augmented reality or the real world. Despite challenges such as motion sickness and technical limitations, virtual reality shows promise in simulating immersive experiences beyond the capabilities of current augmented reality technologies. Factors such as embodiment and the alignment of virtual and physical elements are identified as critical for enhancing immersion and reducing discomfort.

Overall, this thesis provides a preliminary understanding of user preferences and lays the groundwork for future research to further investigate and refine these design principles. It contributes to the development of immersive navigation systems that offer drivers a more accurate and engaging view of their surroundings, thereby enhancing the driving experience and improving safety.