Join Date: Dec 2011
Location: Milwaukee, WI US
Drives: 2012 Sportage SX AWD Mineral Silver
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I have the Galaxy Nexus (prior to the Nexus 4) and hook mine up using Bluetooth only. I do not connect to the USB port as it tries to play the music only loaded on my phone like a USB drive. The charge it gets from it is minimal too. Going over bluetooth works awesome. I can stream from TuneIn Radio, Pandora, Google Music and more. I can also stream from music loaded on the phone. When a call comes in, it pauses all that to take the call and starts back up after, although once in a while it doesn't and I have to hit play to start up the tunes.
I use my phone for the GPS as well and the directions will broadcast over the bluetooth too. There is a bit of a drawback here though, but this really affects any phones that you are using as GPS and hooked up to bluetooth, you can only listen to music from your phone when using you the GPS. If you try to listen to the regular radio, you won't hear the GPS directions unless you disconnect from Bluetooth and listen to the directions from the phone speaker. Hope that makes sense, but any phone would do this.
So, not exactly what you are looking for from a Nexus 4 owner, but I would expect a similar experience, both being Android phones. My Galaxy Nexus is not officially supported and I don't think the Nexus 4 is, but I haven't had any issues, so you should be fine.
I do have a USB memory stick (16gb) loaded with music too that I plug in to the USB port instead which gives me tunes when I don't have a signal from the phone. Could be an option as well for you.