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How hot does the plastic engine cover actually get? It I was to wrap it in vinyl will the wrap hold up in that heat? Considering the piece is plastic, I'm thinking it may be able to handle the heat? Problem with wrap is it stretches when hot doesn't it?
I would opt to plastidip over vinyl wrap from experience on the covers. Zero issues with dipping on several vehicles. Vinyl wrap doesn't always stick to the plastic well.
A wrap is no more likely to catch fire than anything else under the hood. Even rodent nests full of dry nuts straw seem to resist spontaneous combustion so that is the least of your worries.
Getting the oil film off the cover is your concern. Use the right product and you should be fine. Well unless someone sprayed it with silicone!
I would not worry about the wrap catching fire, you can heat them up pretty high when installing them. My worry is that the heat would cause the wrap to soften and lift or even slide of completely as time goes by.
If you just want to change the color I think the Plasti Dip is the way to go, or just go with a carbon fiber cover like @MAizz .