Are 2+ Foreign Keys a Bad Idea in any Association / Junction table?
There is nothing wrong (in principle) with a three way (or more) intersection table, as long as it properly describes your relation.

However: Your particular table is not in third normal form (3NF).

You should generally normalize to 3NF unless you have good reason not to.  

The problem is that some of your data depends on part of the key, instead of on the whole key.  This means your table is only in second normal form (2NF).

Consider this:  Your table would allow a record that says a Prius is a Toyota and another record that says a Prius is a Chrysler.  Obviously that's not good.

You want to remove the hierarchy of make and model into a separate table.

Similarly, the type of a car is dependent on the model, but not on the colour.

So what you need to do is separate these columns too.  What you really need are four tables:


Manufacturers (manufacturer name)
Models (model name, FK to Types and FK to Manufacturers)
Types (type name)
Cars (FK to Models, colour)


This would give you a normalized schema with no redundancy and very little risk of data corruption due to insert, update and delete anomalies.