Well, the criminal then gets to pay for the damage he caused to the car.
If something was stolen from me I would damn sure want to (preferably) get it back or at least get loss compensated. It does not matter that that something is not worth tens of thousands of dollars - it's still my money and my item.
Now, whether it is worth to the public - yes, most likely. While I would probably be OK with the government buying me an identical car after the cops refuse to recover the stolen one, the number of car thefts would increase. After all, if you steal a car that's cheap enough, the police won't chase you, so you get a free car.