Best DAC for iPhone - Volvo Car Play Connection?

If I understand the situation the DAC being used is on the car side. The iPhone would be sending a digital stream and the B&W converts to analog and amplifies.

I think this is correct.

This is something I am not clear on.  

The audio is coming from the iPhone and going out of the audio out of the iPhone.  So, therefore, the audio coming out of the iPhone is already going through the DAC in the iPhone.  If that is true, is there any way to bypass the DAC in the iPhone with an external DAC or not?

Please let me know what you think.  Thanks!

+1 Glennewdick

Check out the Audioquest Dragonfly line, notably Dragonfly Red. The form factor is ideal for what you are doing.  Plug it in to a Lightning-to-USB converter.  The Tidal app on your iPhone will recognize the Dragonfly and treat it as a MQA endpoint, direct-streaming digital to the Dragonfly DAC and yes, bypassing the generic iPhone firmware.  I is actually quite good, and can also be used to drive headphones.

Pretty sure your iphone is sending digital to your car.  

Your iPhone is connected to the car's USB input, which is a digital connection. A DAC converts a digital signal to analog. Unless your car's audio system has an analog audio input, there is no way for you to use an Audioquest Dragonfly or any other kind of DAC.