Four to five year old leather should not be peeling like that, even if neglected. Prior owner may have used harsh chemicals to clean or I wonder if the owner or selling dealership applied a repair to cover excessive wear or damage. I`d look to a salvage yard for a replacement skin in the same color in good condition. Lots of Camry`s sold so you should have little trouble finding a match. You might also take it to an auto upholstery specialist or leather restoration company in your area for estimates. If you plan to keep the car for a few years it may pay to correct this issue. You might also consider flipping the car now before the condition worsens.