You could store it that way instead of the standard way, but then you can't use it like an iPod for normal listening.
What I did for my car playback was to buy a CD player for the car that has an AUX input on the front. Then you buy a $3 cable from Radio Shack or someplace like that, plug one end into the iPod, the other end into the AUX input, and it plays like a charm.