Android Auto - Use Car Antenna
Right now, when connecting to Android Auto, Waze still uses the phone GPS antenna. In comparison, Google Maps pulls the location from the headset/car antenna, which is often placed optimally to maximize GPS signal strength from within the car.
Please set Waze to use the car's GPS antenna when connected via Android Auto

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Mikko commented
Agree. I'd rarther use waze than google maps, but because waze uses phone gps instead of my aftermarket stereo gps on my dashboard I'm left with google maps for now. Please change this in upcoming patches.
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Anonymous commented
Totally agree. Also, since Waze uses only the phone's GPS, I experience battery drain even if plugged into my head unit's USB port for Android Auto use. When I use Google Maps Navigation on Android Auto, the car's GPS antenna is used instead, and my phone actually charges.