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The pegboard can be purchased already white. It is more expensive than drywall, (home depot-lowes) but I can't tell you how much. Comes in 4x8 sheets and you don't have to tape and sand, although if I did a garage in sheet rock I doubt I would tape and sand anyway. If you do this get the sheets with the 1/4" holes rather than the 1/8" as the hooks are more substantial and you can hang larger, heavier items. I believe you can also use 1/8" hooks in the 1/4" holes but I haven't tried it.
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87 944S Black/Black Club Racer
87 944 Kalahari Beige/Brown Daily Driver
82 911SC Platinum Metallic/ Brown Garage Queen
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