While you can squander money on drink, you cannot generally squander anything else on drink. The top dictionary definition of "squander" is "to spend or use (money, time, etc.) extravagantly or wastefully." You cannot "spend" a car or a computer, so it doesn't make sense to squander them either.
Strangely, using "drink" idiomatically to mean "alcohol" is almost always done in the context of wasting money, time, or opportunity:
He blew his money on drink.
She had so much potential, but she wasted it all on gambling and drink.
Otherwise, native speakers tend to use a different slang term, such as "booze", or a more literal or specific term like "liquor," "beer," or even just "alchohol."
Edit: To clarify, I am talking about using the word "drink" as a mass noun with no article, equivalent to "beer" or "water." Using it as a verb ("I drink to forget my troubles") or as a singular verb ("Let's go out and get a drink") are often used to imply alcohol in many contexts.
Here are some alternatives that I think communicates what you're trying to say. I'm ordering them roughly from most straightforward to most judgmental:
He sold his car to buy alcohol.
He traded his car for beer money.
He sold his car and blew the money on booze.
"Squander" is a funny-sounding word, and normally used only in specific contexts. The most common phrases using "squander," as far as I'm aware, are:
- To squander money / resources
- To squander goodwill
- To squander your time
- To squander an opportunity