Car wraps are fine sheets of vinyl glued to the car. They are commonly used for advertising or for getting complicated designs on a vehicle that would be much more expensive and time consuming to paint. Car wraps are typically considered a more affordable way to customise a car, though the results may not always be up to professional standards.
A pro of car wrapping is the cost of the process. According to hotrod.com, the only type of paint job that costs less than a vinyl wrap on a car is when you're getting a single, plain colour. If you want any sort of pattern or picture (such as flames on the hood, advertising on the side) then the vinyl wrap will be more affordable than incorporating that type of image into your paint job. You also won't need to find someone with a great deal of painting skill, as vinyl wraps are typically made via computer.
While a vinyl wrap can approximate a paint job, it will never fool an observer. This can be a major con for those who want their car's design job to look authentic and eye-catching. Additionally, vinyl wrap on a car will always have lighter colours, and getting truly dark, glossy sheens may be beyond the capabilities of a vinyl wrap. In some cases, especially where the entire vehicle isn't covered by the wrap, it will also be obvious where the wrap ends and the car begins.
An upside of vinyl wraps though is that they can be easily applied to one or to a hundred cars. For businesses that have fleets of vehicles where all of those vehicles need to have the same design job, a vinyl wrap makes a great deal more sense than a paint job. Since the vinyl wrap is more affordable it saves the business owner money, and the wraps can all be printed to exact specifications so that each vehicle has the same vinyl wrap with the same colour scheme and the same designs on it.