As I understand it - and my understanding is rudimentary... the purpose of a cache is to save information that is re-used regularly, to speed up loading time.
So really, clearing the cache, in theory, should NOT make gt5 "run faster".
The reason clearing it helps sometimes, one would have to assume, is because sometimes the information saved perhaps gets built up too big, & therefore has the opposite effect that it should have... or perhaps because it's causing outdated information to be loaded instead of fresh information, in which case you would get improper information loading in your online races.
What information is saved in the cache, I have no clue at all. And I doubt that specific information on that has been made public.
I just know that clearing the cache before entering a lounge/lobby, can prevent the "black screen" problem from happening.
And I know that people who experience "invisible cars" in races, can sometimes solve the problem by exiting the lounge/lobby, clearing the cache, rebooting the game, & re-entering the lounge/lobby.
I have not heard that clearing the cache would make lobbies or lounges load faster, tracks load faster, nor have I heard that it would help with lag & latency as a general rule.