The police already impound too much private property for questionable reasons. It puts the burden of proof on the accused to get their property back before a conviction. Everyone is still entitled to their day in court.
Also, in this case, it leaves open the potential for innocent people to have their cars impounded if they let someone without a license drive their car. Granted, people shouldn’t do that, but would you check your friend’s license before loaning them a car?
I would rather leave the punishment for after conviction. Perhaps confiscate a person’s car if that person is cited multiple times for driving without a license. If they don’t have a car, then jail them (or both).