I don't know of any way of entering the un-reimbursed expenses of an S corporation owner on your personal tax return.
You once were able to do that as employee business expenses, but that was outlawed in 2018. A partner in a partnership can enter the expenses on schedule E, but it is different for an S corporation shareholder.
So, you would have to choose option 2, since the corporation did not own the vehicle. By "reimbursement plan" what is meant is that you have to document the business use of the vehicle.
So, you should report the vehicle expenses on the corporate tax return, but make sure you have documentation to support the business miles driven.
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