I was sued for accident and ordered to pay the cost of repairs, can i make the payment out to the bodyshop only?

Well, you stated "as ordered" i would find that highly unusaul that a court ORDERED someone to fix their car. Did the court do that?

Otherewsie, you are responsible for the DAMAGE; you are not entitiled to dictate that the perosn fix there car ( not vene the guilty parties insurance company can do this)
if the victim chooses to keep the cash and the trashed car and trade that in and add the cash to a DP , it certainly isn't your business. You weer liable for the cost of the damage; whatever subsequent acts they take on behalf of their own property is nobody's business, sorry
put yourself in their shoes. somebody hits you ( for the sake of argument) and then they can tell you what you have to drive ? some peopel do not what to drive a damaged vehicle; once wrecked never the same; taht is why there are businesses like CARFAX ; some people don't want to drive a "fixed " car.