Most legal FM transmitter (like Radio-Shack) are tranmitting very low power. This mean that the transmit antenna needs to be very close to the receive antenna. There is three solutions to your problem.
1) You can get a higher power FM transmitter (available in kit on the WEB).
2) Modified your transmitter to increased the transmit power.
3) Get a Y antenna splitter. Install it inline with the car antenna (behind the radio) and inject directly in the radio. Or better, there is some RF modulator that already exist with the proper cable and connectors. They are usually sold with CD changer that are RF connected to the car radio. If you go to a place that install car audio equipment, they may have some available.
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