Stuck with useless car, need advice. : personalfinance

So last February my husband and I had to buy a car. We had no money saved and didn’t have a choice but to buy a car off a lot. Couldn’t afford the warranty. Trust me I am kicking myself in the ass for that. The car is a 2015 Kia Sportage.
Anyways in November the engine locked up. It needs a new engine, were looking at a couple grand to fix. Right now it is sitting in my front yard. We’ve been making the monthly payments ($350 a month) and we can’t afford a new engine. We could probably use our taxes on one, but we also have house maintenance that needs taking care of, I have a surgery I need this year etc.
So here’s where we need advice. My husband wants to surrender the car, basically a voluntary repo. We owe 15k on it still. I know we’ll still owe a ton of money and be required to pay it off eventually, and it will hurt our credit score that we JUST got back into decent range.
Is there anything we can do? Any other option we’ve not thought about? Any advice is seriously appreciated.
Side note: were currently taking ramsey’s financial peace class. We have no savings and very little extra to work with at the end of the month. Husband argues freeing up $350+ a month could really help us achieve financial peace, I think it will set us back.

Edit to add: I inherited my grandfather’s jeep a few months ago so we don’t need this car anymore.

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