How does the ipad mini wifi only know my location when not connected to wifi?

I thought the wifi only ipad mini does not have a gps chip.  Yesterday however, I was driving around with my wife in the car (no wifi) and the ipad mini was able to keep track of my location on the map I had pre-downloaded.  How is this possible?

Your WiFI only position is determined by the iPad keeping track of the names and intensity of the various WiFi signals and comparing that to a database of WiFi access points with their locations.

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