That should be OK for spraying. I found with a 1.5hp compressor the pressure couldn't keep up (OK for small panels only), but 2.5hp the pressure should hold reasonably.
The spray gun that comes with it will probably be useless though - well worth nipping into a local paint shop to pick up something that will atomise better with an appropriate nozzle size (£50 ish).
Watch the water too - worth fitting a filter/water trap or a separate filter regulator or else you could get oil and water mixed in with the paint spray.
I had the exact same compressor before I left the UK. Can you spray a car with it?
Yes - I did. I painted a '28 Model A Ford with mine.
There were a few issues -
1. The air delivery is really not that fantastic. The paint didn't atomise well, and I had a lot of orange peel to get rid of afterwards.
2. The tank isn't really big enough. For anything. I could just about do two passes on a door before the air ran out and I had to wait for it to refill. While that didn't really lead to an issue with the paintjob, it was frustrating.
I painted the hood at a later date, and it was pretty good for that, as it's a small, separate piece. Painting any big, smooth panels, like a roof with it might be a challenge.
Also, the small tank means you can't really run any tools off it either.
In fairness however, I did get a reasonable paintjob out of it, and it was/is cheap. It maybe led to more work overall, but it was all I had, and it did work.