PS3 Driving / Racing Game for 5 Year Old

Little Darling (10) says maybe Gran Turismo ("although it might be too complicated") and maybe Need For Speed (Mr. Darling points out that the whole point of the game is running from the law, so YEthicalMMV there). Both said they don't like a steering wheel.

Test Drive Unlimited 2, with the Driving Force GT from Logitech. If you're feeling very generous, the G27 from Logitech, which includes a shifter.

The original Motorstorm is fun, simple and has a variety of vehicles. It's also dirt cheap these days.

I love Gran Turismo, but it's pretty hard, and I can't imagine a 5 year old playing it without being frustrated. I have the G27 wheel, and I also don't think that's really appropriate for a 5 year old. The pedals are fairly hard to push, and the force feedback on the wheel is strong (though I suppose that might depend on the game).

I am biased as I work at the developer, but Mod Nation Racers is a fun racing game suitable for kids, and they might well love the creation side too.

Definitely check out Burnout Paradise; I think there's a demo on PlayStation Network. It's very arcade-y, and smashing into things is encouraged, so there's a low frustration factor. He might have a hard time winning the races/missions, but there's also a big city he can just drive around in and jump off ramps and smash into things. I don't think it supports splitscreen, though. I'm not sure about wheel controllers.

Mod Nation Racers. It's family friendly, and has attractive imagery for them. Pretty much any other racing game is realistic and gritty. Also, there are many kids in that age group playing MNR("many" is relative to other racing games). My 9 year old son does enjoy driving around the city in Burnout Paradise, but can't really do much else besides free drive. And I think the only reason why he likes to play it at all is because I like to play it.