This seems like a bad idea all around. 1. Why would you destroy something of value instead of diverting that value to a better use. 2. Historically speaking, siezure of legal goods or property from private ownership has bred abuse of that power in most instances. 3. By knowing you will be crushing the car, you give great incentive to run at all costs which puts the suspect, the officer, and the general public in greater danger.
In my opinion, there are many better ways of dealing with the issue including but certainly not limited to:
1. Making the fines prohibitively expensive if you must, instead of siezure and destruction of private property.
2. Stop shuting down all of the racetracks that give this activity a proper showcase.
3. Build additional short tracks and encourage their use through affordable entrance fees.