SAN DIEGO -- The Cash for Clunkers program was a huge success for many car dealers, as 700,000 vehicles were sold during the two-month program.

However, the program was not a boon for the homeless in San Diego, according to Father Joe Carroll.

Father Joe said his organization lost $450,000 during the Cash for Clunkers program. He told 10News people who would have normally donated cars to Father Joe's Villages were instead going for government money.

"We may offer a tax credit of $2,000 (but) the government can give you $4,500. So we couldn't compete with that," said Father Joe.

Father Joe's Villages used to take in 800 cars a month, but now they only take in half that amount. Father Joe said car sales make up about 20 percent of the organization's annual budget.

With the down economy, more people need homeless services, but donations are down. So Father Joe expects to be down $3.6 million by the end of the year.

"There's no way to make it up, with the economy the way it is and donations down," said Father Joe.

He said he might have to close the medical clinic part time, and cut back on counseling and services for children.

"Who gets hurt? The guy in the street," Father Joe said.

Father Joe is heading to Washington, D.C. next week to talk to congressional representatives about ways to improve the donor car program for his charity and others.