Hi hyper,i don't think you can scrap the VX if you own money on it.
I think you better move is to sell it like that for the amount you still owe & pay off the loan.
Your other option is to hold on 'till things gets better & you can be able to rebuilt the engine which is what i'll do,however the last word is yours.
Is unfortunate to know that such vehicule was paired with the worst engine i've ever dealt with,as you said ..it just sucks