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Car loans are typically favourable as it's so easy for them to reclaim the car if you do stop paying.
It certainly depends on the car, but a newer/better car for 5k will almost certainly save you money in parts and repairs over buying something you can afford in cash. I've bought a lot of cars over the years and when I pay £1000 for one, I plan to spend at least another grand and a half on it within the first year of ownership, just on keeping it running and legal. With a five grand car (again depending on what it is, but I'm imagining a newish modern hatchback) I wouldn't expect any spending other than consumables.
I have used Zuto in the past to secure a classic car, but that was long enough ago that I couldn't really offer a recommendation now, but they were good to me then. A dedicated car loan will usually be better than just unspecified cash loans, you might even get a free mechanic's check on the car before it is bought.