From the picture it looks likes the steering wheel needs to be warrentied (even though it is out of warrenty). You might notice the same peel on the front interior door handles as well.

 

The peel on the steering wheel and door bezel is something that I came to expect and deal with. For that price I think its a steal and plus since I wont be spending as much on the car itself I can always pay for it to be fixed.

BTW thanks for all the support guys!