But he says it isn't costing taxpayers a penny. And the shiny 2007 Ford Mustang is grabbing some attention -- not because it's sporty, but because of who's driving it.
"I made this promise that I would save the taxpayers money so as long as I'm sheriff you will never have to pay for my gas or my car ever," he said.
Federspiel used to drive an SUV until a drug dealer made it possible for Federspiel to trade up.
"If we can prove you purchased items -- whether they be vehicles, whether they be a house or other items with drug money -- we can seize those," he said.
Federspiel says drug forfeiture laws will also allow him to pay for gas and maintenance as long as he's using the car in the war on drugs.
"It's a moving billboard for crime prevention -- and drug prevention, specifically -- and that's a key component for forfeiture laws," he said.
The sheriff says he likes the car and loves the decal: "Taken from a local drug dealer."
Many Saginaw County citizens say seeing drug dealers drive around in nice cars is frustrating.
"I work at McDonald's and I don't make enough to drive that. And I'm legit," said Dustin Rieger.
Usually when cars are seized in drug cases they're sold and the profit goes into the drug forfeiture fund, but this time the sheriff says the money was better used elsewhere.
"First of all it was free and clear of its title, and secondly it was the color of our sheriff's office -- the black cars -- and third it takes the burden off the taxpayers," Federspiel said.
Federspiel estimates in gas and maintenance alone, this move will reduce his budget by $2,700 a year.