Since you will still be using the space as your garage and/or shop you may consider putting some drywall at selected locations on the walls to help reduce the amount of absorption in the space.
I was thinking the exact same thing. Perhaps 2' drywall strips (spaced 2' apart), and add more as necessary. Yep, needs reflection.
I would also consider plywood or OSB, but as you say, it's still costing a fortune compared to gyp board.