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Available for free, if you jailbreak your iPhone, is an application called XGPS. Since it is free, it doesn't offer as many features as paid applications do, but it certainly is a nifty app for being free. Like the map application pre-installed on the iPhone, it uses Google maps as its source for navigation. You can also put maps that you download from the computer onto this GPS for free, using a manager for the app. The manager can be downloaded
here. The free application also features offline map mode, so if you are out of service, you can still view maps. Like most other GPS applications, it features turn by turn instructions and a voice (synthesized voice), for vocal instructions (only in English). Even without some of the more expensive features, this app is certainly one to get if you don't mind jailbreaking your iPhone.