I know this is a super old topic... BUT I'm thinking of doing exactly this and I'm having a hell of a time finding any information about this! This is the closest thing to some real information I've ever seen, so forgive me for digging up a 3 year old post!
Anyways, here's my story:
I'm in my final year at Uni, I'm 22 years old, 23 in February. I'm in the process of applying for a position as a Fremdsprachenassistent with the CAUTG or the Government of Manitoba (through an education agreement with Niedersachsen & Hamburg) for at least the 2006/07 school year. I might decide to stay longer, so who knows. I'm going to apply for Bayern, Berlin or Rheinland-Pfalz for the program. I was in Germany in Trier on exchange for the 2004/05 academic year. I had an absolute blast, but I was dearly missing my car, despite european fuel prices (I was 15 mins away Luxembourg, so it was like €0,95/L when it was €1,30 in Germany). I won't have any idea as to where I'll end up, or even whether I'm accepted before next April, so it's a long time coming yet. I like to plan everything in advance. I also don't know how long I'll be staying there, but at least 1 year, possibly more. It all depends on a billion things right now.
As for a car, I have a 1997 VW Golf, which I am sure complies with all the German tail/head/blinker light rules. My blinkers are orange, I have ones on the side, the headlights don't have orange in them, etc, like you guys were complaining about American market cars. No rear fogs, but my car is not 1999+, so I doubt I have to worry about that. German cars sold outside of Europe tend to still comply w/ the European standards for lights and signal markers, since they are better than the American/Canadian standards anyways. I've also been told they purposely make them way better than they need to be so they definitely pass the necessary inspections by the respective transport agencies to be allowed to be sold in the US/Canada.
The only thing that worries me about my car is that VW, for some reason, created a Canadian market ONLY 1.8L gas engine, the ACC or AAC model, I forget exactly which, but I know from the VW service manuals it's Canadian only. My best guess is this was due to differing emissions laws in the US. I can't afford the TÜV telling me it's not in their database and €600 of "tests", and for what? It's a VW for Pete's sake!
Also, someone mentioned driving around with Ontario plates on German insurance. How the hell did you do that? I asked Autopac (our craptastic public insurer) if their insurance covered Europe and they of course said no (why would it?), but I never got a straight answer out of them as to whether I can keep the Manitoba plates without Manitoba insurance. Also, did you have to put a CDN sticker on your car to identify it as being Canadian? I know you're meant to put those on. I have a D on my car right now, just for fun.
Also, which insurer did you use in München? My friend's Bavarian cousin told me that Bavaria has it's own state public insurer (like Autopac & SGI), but I'm not sure if that was bounced off the language barrier a couple times. Also, if you don't mind, how much was the insurance for a year on a '99 Civic? Is insurance more expensive because the car isn't common and difficult to find parts for? What about accident history and speeding tickets and things? I know they can't access those details from your home insurance company because of privacy laws, but did you declare them or not? I tried using an online insurance calculator thing, which by fudging some details (like plate #, and Schlüssel number... whatever that is) and guessing my way through most of it, I got what I guess is a half decent price (just under €700) on a full year of Vollkasko with all the trimmings. That's cheaper than a year of Autopac w/ a full 5 merit discount. Though, insuring there with German plates wouldn't be so bad after all, but I'd miss the ol' MB plates. They have pretty trees on them, and come in handy with those pesky speed cameras and getting out of London congestion charges.

Another option I considered is selling my car, and buying something even older that will be 15 years old by the time I decide to go home, so Transport Canada even considers it being allowed in the country. That or store it in my girlfriend's parents' back yard (sorry, back garden) in England until I return... if they let me of course

Something like an older MK2 Golf or a Corrado perhaps. Nothing too expensive though, but definitely something German! Anyone have experiences with bringing a car back home to Canada, or the US, but more specifically Canada.
Thanks,
Cam