Replacing two civic cars with one cheaper model is saving £73,000, a Nottinghamshire council has said.
Two Mercedes limousines used by the chairman and senior officers at Nottinghamshire County Council have been replaced with a Ford Mondeo.
It is part of a wider rationalisation of the authority's fleet of vehicles.
The Conservative-run county council claims that by ensuring a better use of its cars it will make an annual saving of £900,000 by the end of March 2012.
Councillor Keith Walker said: "In these difficult financial times we are striving to reduce waste across the council to help protect front-line services and make the most of taxpayers' money.
"This new vehicle will mean less maintenance, operational and fuel costs and will reduce my carbon footprint for the benefit of the environment."
Matthew Elliott, chief executive of the TaxPayers' Alliance, said: "It's shocking that Nottinghamshire County Council didn't scrap the use of these luxury vehicles sooner.
"There are big pressures on their budget at the moment and this is an easy saving that won't affect front-line services.
"It's great that the council is rationalising its fleet and looking at ways to saving hundreds of thousands of pounds in the coming years."
Nottinghamshire County Council said it started a review of its fleet in November 2010 and disposed of the first of its two limousines in March.