Do people listen to the fine print?

I don't know where you folks are from, but around here we get some really stupid advertisments on the radio. The latest one I heard today was a car advertisment where the talking head said that you should come down and buy a car because they will pay off the balance of your current loan up to $10,000! The thing that had me shaking my head was that they make it sound like they would just take care of your current loan, and the balance would just vanish into thin air. Do people really think some car dealer is going eat a $8000 loss just so they can make $1000 on that Hundai they're trying to get rid of.

At the end of the ad you can hear the disclaimer in soft-fast dialogue, "Balance of trade in transfered to new loan." I have to guess that people fall for this, or else why would they run the same ad year to year?