If the only way they can buy a car is to take out a 7 or 8 year loan, they probably can't afford it even at these low interest rates. Unless they put a healthy down payment on the car, the car is going to be worth less than is owed until the day its paid off. If one is disciplined and wants to use the low interest rates to manage cash flow, I'd say go for it.
You are correct...... however the payment per month is of very significant import