Version 2 is correct. You are right to acknowledge that you are referring to more than one model. (Version 1 implies that the two cars are the same model by referring to it singularly.) Another option that could be clearer in some contexts would be to say, "I asked them about the models of each of their cars." You could even say, "I asked each of them about the model of his/her car."
I hope that's helpful! Let me know if you have any follow-up questions.