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Rent car or transit - Varenna to Dolomites

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We are traveling to Northern Italy in Sept. Flying into Milan we are spending 2 nights in Varenna and 3nights in the Dolomites (Ortisei or Castelrotto) then on to Cinque Terre, Florence and Rome. My questions concern whether or not train/bus travel is better than driving and have 3 scenarios:
1. Take train and bus to/from all destinations
2. Take train to Varenna from Milan. Enjoy our two nights using local transit then pick up car on Monday in Varenna area and drive to the Dolomites, use car in Dolomites then drop off car in Bolzano and take train to cinque terre and use transit the rest of the trip.
3. #2 except take transit instead of car from Varenna to Dolomites area and pick up and drop off car in Bolzano before heading to cinque terre.
Thank you!

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