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Too harsh even for these idiots. You can't function without a car in America. It would leave to poverty through job loss which isn't the goal. We already have penalties this: you can't get a successful inspection with an illegally modified car. Then you can't get registered, can't get insurance, it's illegal to drive, etc. That's functionally the same thing but now they have to pay, potentially fines too, to get their car fixed or receive recurring tickets that would eventually lead to dissolution of driver's license. And if law enforcement sees an illegally modified car, they can issue tickets and require another inspection.
That's exactly why we should take peoples' licenses away more often: maybe then they'd give a shit about changing that!
The point is that if you do that, you're screwing them over in a way that has a much greater impact that initially observed. If your point is to lead directly to destitution as a punishment for rolling coal, then just say that. Push for incredibly high fines instead, that's not veiled.
If you don't want them to drive that car then you could impound the car. Which is itself a fine in the tens of thousands. Unreasonable for most people.
No, the lack of walkable zoning and infrastructure for other transportation methods is screwing them over. The court has nothing to do with it.
And again, I'm an enthusiastic supporter of taking people's license away for lots of things, not just rolling coal. In fact, I think the driver's test ought to be difficult enough that a decent fraction of people shouldn't even be capable of passing it to begin with.