Wow..this is way more complicated that we thought.
Check out this thread, it is more or less about the same topic:
http://www.travellerspoint.com/forum.cfm?thread=70191
I'll answer there in more detail later, it is pointless to write the same stuff twice.
Bottom line: it is not easy, you need to apply for a residency permit in order to register a car in Germany. You need to do this anyway, because:
We are heading to Europe from Australia for a European roadtrip for about 6 months.
The max. amount of time you are allowed inside the Schengen area without a residency permit is 90 days.
If you want to stay for 6 months I suggest getting a residency permit. If you are under 30 the Working Holiday Visa will be easiest to get.
An alternative to buying a car can be long-term car rental, this is available for factory-new French cars as some sort of tax-loophole. Search for "long-term car rental Europe" and you'll find a bunch of companies.
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