I would assume that it is very likely that the car and all of its contents, except perhaps entirely personal effects, maybe work-related items and items that clearly don’t belong to you (except the car) will very likely be confiscated and forfeit.
The issue here is “asset forfeiture”, which has been a tried-and-failed method for curtailing drug trafficking for many years, but for just as many years proven as a tried-and-true method for enriching local and state police departments. Some states have worse reputations than others in this regard. I recall reading in the past few years about some terribly egregious examples from Tennessee, for example. (In fact, in most of the worst cases, drugs weren’t even in direct evidence, but people stopped for completely non-drug related causes who were found to be carrying large amounts of cash – usually 1000s of dollars – were “assumed” to be on the way to a drug buy, and the cash was simply taken.) The legal reasoning is that “the property does not enjoy Constitutional protection”. What’s worse is that the person who becomes so victimized then has to mount a lawsuit of his own to recover the forfeited property.
Massachusetts had a bad example recently – since overturned, but the case took years to resolve – where a mom-and-pop motel where rooms were sometimes used for prostitution and drug deals was simply taken from the owner in an asset forfeiture case. The motel owner had to mount a long, drawn-out and expensive suit to recover his property in a case where he had done nothing wrong. (How many motel owners are in position to know everything that goes on in their rooms?)
For these reasons I expect the police to take your father’s car and your cash and anything else that could conceivably be tied to “drug trafficking”. They don’t need to make an ironclad case; you will be the one who has to sue for its return. (That’s why they wanted to know if the car was paid-for, because if it hadn’t been, then they know they’d have a big fight with the finance company, and they don’t want that fight.) You and your dad? Yeah, they’ll take you on.
I expect this because, as you say, this is a “marijuana distribution” charge, meaning drug trafficking. You won’t see that car again, I think, unless your father is willing to pay an attorney more than the car is worth (and be willing to air dirty laundry in public court about your probable drug dealing) to get it back.