I chose option 3 like most others
I like to reserach what is out there & get quality stuff that lasts a looong time. This last year or so has been a big one in terms of dollars: fancy new bike, fancy lights, fancy tires, etc. all told probably close to $3k.
but i will ride this sucker for a very long time. I justify it by the facts that
1) i ride a lot
2) i enjoy it
3) cheaper than a car
4) combines pleasure with utility
5) buying the nice stuff often saves repair/replacement costs down the road
6) buying the nice stuff is often a bit safer - i.e bright lights, reflective tires, disc brakes...
7) the last bike went about 10yrs and maybe 50,000 miles. This one will be at least that long.
Cheers