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Vehicle vinyl wrap and color change wrap grew in popularity out of the wrap advertising business. A large milestone in the shift from small production vinyl lettering to a full vehicle vinyl color change took place in Germany in 1993 when the vinyl manufacturer Kay Premium Marking Films (KPMF) was asked to produce a film to be used to replace paint for the purpose of converting cars into taxis. At this time, German taxi companies were required by law to paint their fleets in beige. KPMF provided an alternative to painting, which allowed taxi companies to bring a large fleet of vehicles into compliance with German law while maintaining the future resale value of the vehicle. Prior to this point, decommissioned taxis were heavily discounted or had to be completely repainted. With the use of vinyl for vehicle wraps, there was no need to repaint them as the vinyl could be removed without damaging the paint underneath.

Wrap installers that performed advertising vinyl, began to offer partially or full vinyl wraps as a cosmetic enhancement. Rather than advertise a company or brand, vehicle owners wanted to change the color and finish of their vehicle for cosmetic or protective purposes. Manufacturers of vinyl wrap followed this trend by producing more colors and easy to install durable materials.

In 2017, color change vinyl wraps, paint color matching vinyl wraps, and overlaminates had evolved to include complex and creative graphic designs and advanced colors. Metallic, chrome, color shifting and even vinyl wraps that match OEM paint code colors are available.