Why not sell it at auction and put the money into the treasury? I don't see the point of crushing a perfectly serviceable car.
They used to sell impounded cars - in not sure if they still do it.
The impression i have is that the authorities and the car manafacturers are both inclined to not recycle cars - accident damaged or impounded, for their respective reasons ;
The police - to reduce car crime - ringing etc
The manafacturers to increase business throughflow.