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i paid 4500 for it

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Is it in her name or yours since you bought it. If her name, I may ask a Medicaid caseworker how that will affect Mom if she sells it since she did not pay for it. Can you get back what you put into it?

If your name, there is no problem, the carvis yours not hers.
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Sort of depends on the value of the care when you purchased it.
Are talking a 1955 Mercedes Benz 300 (sold at auction of 142 million)
or
Are talking a 1997 Geo metro hatchback valued at maybe 1500?

As long as
1. Your mom is cognizant and she can legally sell her car.
2. it was sold to you at Fair market Value
There should not be a problem with the sale and it should not be a problem with Medicaid application.
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Your mother has a right to sell her car to anyone she likes for fair market value.
The money she gets from the sale goes into her accounts and becomes a part of the assets she spends down either before entering care, or after entering care.

I am uncertain of the question here. She did not GIFT you the car. THAT would have been a problem.
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