The Cash For Clunkers program is misunderstood by many people because of the negative spin that many media outlets and pundits are spewing. Here are five Myths.

Myth-1) The CARS program allows participants to trade in an old wreck and get a $4500 credit.

Not True - The rules are: The vehicle must have been continuously registered and insured for no less than one year prior to the trade-in. So while cars that are just occasionally driven are being traded-in under CARS, no cars without active registration and insurance can legally participate. Also, the trade-in of any car or truck that has a trade-in value greater than the CARS program credit will not benefit from a CARS credit.

Myth-2) The CARS program is helping import car companies more than US manufacturers.

Not True - So far the program is benefiting the entire car industry. Of the top 10 car models sold in July, seven were assembled in the US or Canada, and many were built with American made parts from American factories. Click this CARS link for a video describing the trade-in statistics.

Myth-3) Getting "clunkers" off the road has minimal impact on reduced emissions and fuel consumption.

Not True - The latest government statistics show that clunker trade-ins have an average fuel economy of 15.8 miles per gallon. The average fuel economy for new cars purchased under the program is 25.4 mpg. The first 1 billion spent on the CARS program produced an overall reduction of 665,000 metric tons of CO2. We should see a three fold increase with the additional funding. Early reports are also showing that US consumers are mostly using the Cars Program to go down in vehicle size and up in fuel economy.

Myth-4) People will joy ride because they have a new car and defeat the programs intended fuel savings.

Not True - Does anyone really believe that new car owners are going to offset annual gasoline savings of nearly $1,000 per car by joy riding? If new car owners do drive more, it is much more likely that they will take a family trip to a recreational destination and stimulate the tourist economy (restaurants, stores, theaters, parks etc)in the US.

Myth-5) Cars and trucks that are being scrapped are going to waste.

Not True - The only part that is destroyed is the engine, which is disabled by running a compound through it instead of oil. The engine metal is then melted down, recycled, and used to build new cars -- using far less energy than mining raw ore. Almost all the other car parts can be made available as replacement parts for "clunkers" that are still on the road. That is very good news for those that can not afford to participate in the CARS program and need to continue driving their older vehicles.

The CARS program is a grand experiment, and so far it is helping stimulate the US economy, reduce emissions and fuel consumption, is benefiting many blue collar workers and middle class families, and is showing the world that the the US government can champion massive domestic positive CHANGE. Some have called the Cash For Clunkers program a kind of "trickle-up" economic program.

The Cash For Clunkers concept is in it's infancy and it will evolve and inspire many government and private sector innovations.

What would you recommend for future programs, improvements and catchy names?

ForClunkers.com

- Joed