What causes "rubber banding" when using free cam?

I've always seen it in my game and other's videos, but I've never cared until today really!

Curious why when you are flying along side a car using free cam that the car seems to rubber band forwards/backwards. I always thought it was an FPS issue but even at 120fps+ it still happens. I'm assuming it's some sort of physics update issue but I just can't wrap my head around why it happens.

Hopefully a dev can chime in =)
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I.E.

 

Thanks for the report. It looks to me like a bug, we'll certainly investigate it.

 

Awesome!