It's the thing they use to completely cover a car in a Red Bull advert or similar.

More common is covering buses and trains. For trains in some countries probably the majority of vehicles are wrapped: https://www.aurabrands.com/what-we-do/on-track/rail-livery-b...

If you see a really expensive vehicle (rare sports cars, etc) I think it's the norm.

Big financial hit if you screw up the paint job on a Ferrari or something like that. Either you're going to pay through the nose for paint repairs or you're going to take a huge hit on the resale value of your $250K vehicle.

So a $5000 (or whatever they cost) clear wrap quickly becomes the smart financial choice on your investment.

Yes, but it costs something like $5,000, and you have to think of it in time.