I would guess #2 because buddy who spent all that money on #1 might have some nasty reason for selling it after "four tanks of gas".
Modded bikes sold in like new condition is a red flag... bet it was running lean or something and so now it is toast and buddy wants to get rid of it quick...
Also - when buying a new bike I like to send a fax to all the dealers within 200 miles and ask for the best price. If you tell them it is a simple price war, and you won't be around doing test drives and asking dumb questions then you will likely be able to get a cheaper price.
Some dealerships will not deal - screw them. I got $700 of the price of my 04 last April. You should be able to get a fair bit more off the price now...
JMHO,
Phil