Personally I'd be worried about the risk of fire like mentioned, but that can be dealt with by having metal containers outside the garage for such things. But still, one can never be to safe when it comes to a risk of fire.
Good ventilation via a basic exhaust fan (of a specific size according to the room) in the wall should deal with the smells, in my old house I rigged up a larger bathroom fan in a window in a paint booth I made in the garage, sealed it and it kept the pressure nice. Never had fumes/ smell issues in the other section of the garage.
I'd be concerned about the clearance from the angle of the driveway if your vehicle is low enough to cause an issue if the driveway is to be sloped into the foundation. And a garage away from the house ALWAYS leaves room for expansion.
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