Embedding vs foreign table in one-to-one relations?
Option 1 is close...

However:

If a student can own zero to many cars:


you'd have ownerstudentid in the car table
car is a child of student


If a car can exist without a student, I'd consider a many-many table carstudent with a constraint on carid to allow zero or one owning student

Note:

This is where tools like NORMA come in useful to capture these relationships and constraints in plain English. See Object Role Modelling