He is not being difficult. He genuinely does not want a thing to look after, and he has watched enough gifts go unused to be suspicious of the whole exercise.
The way through is to buy something with a job. Not decoration, not a thing for a shelf. Something that replaces an object he already uses, only better and with a joke on it.

Small enough that he cannot object
Under $20 is below the threshold where he starts saying you should not have.
Die-Cut Magnet, If Dad Can't Fix It, No One Can, Workshop Stamp, Dad Gift Price range: $14.95 through $22.95See it →
Vinyl Sticker, I Fix What You Gave Up On, Dad Gift Price range: $14.95 through $22.95See it →
Black Coffee Mug, If Dad Can't Fix It, No One Can, Gear Crest, Dad Gift Price range: $20.95 through $23.95See it →The one that replaces something
He has a mug. It is chipped and he will not throw it away. This is how you retire it.
Color Inside Coffee Mug, Broken? Hand It To Dad, Dad Gift Price range: $22.95 through $25.95See it →
If Dad Can’t Fix It No One Can Mug | Funny Dad Gift | Father’s Day Mug | Handyman Mug | Gift for Him | Dad Coffee Mug Price range: $22.95 through $25.95See it →
Enamel Camp Mug, Broken? Hand It To Dad, Dad Gift$32.95See it →More in Dad Life.
