So to what level can you actually skin the cars on lfs?

All the skins ive seen seem to just be graphics on the car, none of them really transform the car into another car. So what im really asking is, is it possible to change the shape of the car to make it look like another car, or am i just dreaming?

You are dreaming.

Changing the shape of a car isn't skinning, it's modelling.

You can create the illusion of, but it just remains graphics nonetheless. zeugnimod said it well.

Quote from Knight_Atack :

You can create the illusion of, but it just remains graphics nonetheless. zeugnimod said it well.

is it a lot harder to make the cars seem a different shape? The big thing i noticed was on skins claiming to be rx7 FC's and FD's the shape of the pillars hadn't been changed infact there was no major changes to make the skins look like the actual cars

The skin is just the paintjob. People will add little details like lights or vents to make it seem like another car, but it's never going to change from being what the car is.

Imagination is the key.