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I have one of the latest Pioneer car stereo's in my car and there is a difference between Bluetooth and cable connection in my car. I notice a difference
 
There is technically a degradation, as the audio is compressed further to be sent over Bluetooth. We can't answer if you will notice a diffence, however, as it depends on the speakers. If your speakers are low quality, it's possible you won't hear a difference.

It's similar to the 128kbs MP3 vs Lossless question, there's definitely a diffence, but if you're listening on $10 earbuds it won't matter.
 
kinda curious about using my AUX vs ipod connector...would there be a difference there?
 
Playing music through BT sounds better in my car than using headphone aux or 30pin/USB connector. I can't explain why, it just does. Sounds like CD and HD radio quality. Maybe it depends on the actual system you have.
 
I have one of the latest Pioneer car stereo's in my car and there is a difference between Bluetooth and cable connection in my car. I notice a difference

Absolutely correct. I not only noticed a difference in the sound quality but noticed there was static interference in between tracks. Music covered up the interference but I heard in between songs and had to stop the car to make sure the sound was something wrong with car. Connecting the phone using the USB cable got rid of the noise.

The phone was an inch below the stereo.
 
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